Citigroup has disclosed it will lose US$1.2 billion (A$1.8 billion) on the sale of its Russian unit, AO Citibank, to Renaissance Capital.
Citi had obtained the internal approvals required to proceed with the planned sale, which was expected to be signed and closed in the first half of 2026, the company said in a press release.
The accounting treatment of the transaction would result in a pre-tax loss for the fourth quarter of 2025 of about $1.2 billion ($1.1 billion after-tax), it said in a Form 8K.
This consists of $1.6 billion of currency translation losses, partially offset by $400 million of gains from the derecognition of the fully reserved net investment and the proceeds of the future sale.
The American financial services giant announced in 2022 it was winding down its consumer banking and local commercial banking operations in Russia as part of its ongoing efforts to reduce its operations and exposure in the country.
Last month, Russian President Vladimir Putin allowed Renaissance Capital to buy Citi’s Russian operations.
AO Citibank conducts Citi’s remaining operations in Russia and is reported within its Services, Markets, Banking and All Other - Legacy Franchises businesses.
The sale was expected to boost Citi’s common equity tier one capital mainly because of the deconsolidation of associated risk-weighted assets.
Citigroup shares closed down 92 cents (0.78%) at $117.21 on Tuesday (Wednesday AEDT), capitalising the company at $209.72 billion.
