- Key insight: Roughly four years after the invasion of Ukraine, Citi has completed its exit from Russia.
- Why it matters: The sale of AO Citibank resulted in a $1.2 billion pretax loss on sale.
- Forward look: The former Citi unit will operate under a new name, AO RenCap Bank, and continue to serve existing U.S. and European clients.
Citi said Wednesday that it has closed the sale of a former Russian subsidiary, completing its yearslong exit from the country.
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During the fourth quarter of 2025, the New York-based megabank incurred a $1.2 billion pretax loss on sale in connection with the transaction. The sale included all of Citi’s remaining businesses in Russia, as well as approximately 800 employees.
The deal’s financial terms have not been disclosed.
“We’ve now completed the final steps in Citi’s exit from Russia, a process that began in March 2022,” Ernesto Torres Cantú, Citi’s head of international, said in a statement Wednesday. “We greatly appreciate the professionalism and hard work of our colleagues throughout this process.”
In April 2021, Citi announced that it would exit its Russian consumer business as part of a larger plan by its then-recently installed CEO, Jane Fraser, to shrink the company’s global footprint.
Shortly after Russia invaded Ukraine in early 2022, Citi expanded the scope of its exit from Russia to include other businesses. Russian President Vladimir Putin reportedly approved the sale of AO Citibank to Renaissance Capital in November 2025.
Renaissance Capital said in a press release Wednesday that it now controls 100% of shares in the former Citi unit, which operates under a new name, AO RenCap Bank. It also said the bank will continue to serve its existing clients, including investment banks and funds from the U.S., the United Kingdom, the European Union and elsewhere.
Renaissance described AO Citibank as having Russia’s largest custody operations, and it said the acquisition fits in well with its existing business structure.
“Our group is pleased to welcome a bank with a highly experienced team, international expertise and more than 30 years of successful track record in the Russian market,” Maxim Orlovsky, CEO of Russia & CIS for Renaissance Capital, said in a statement.
Citi said Wednesday that the sale is expected to provide an estimated benefit of approximately $4 billion to its common equity Tier 1 capital in the first quarter of 2026. That’s primarily driven by deconsolidation of associated risk-weighted assets, a reduction in disallowed deferred tax assets and the release of an associated currency translation adjustment loss, according to the company.
Piper Sandler analysts said in late December that the “cumulative impact of all the moving parts” of the transaction “should be neutral” to Citi’s common equity Tier 1 capital.
Citi has said that the $1.2 billion pretax loss that it recorded in the fourth quarter consisted of $1.6 billion in currency transaction losses, partially offset by $400 million of expected benefits.
