After failing to find buyers, Citi has decided to close its consumer and commercial banking businesses in Russia.
Citi will shut down its Russian consumer and commercial banking businesses starting this quarter, it said in a statement Thursday. The closure will result in about $170 million in charges over the next 18 months and affect 2,300 out of 3,000 employees across 15 branches in the country. Deposit accounts, investments, loans and cards will also be affected.
The decision follows failed attempts to find a buyer for either business amid an ongoing Russia-Ukraine conflict.
We have explored multiple strategic options to sell these businesses over the past several months, said Titi Cole, Citi’s chief executive of legacy franchises. It’s clear that the wind-down path makes the most sense given the many complicating factors in the environment.
The bank’s Russian exposure totaled $8.4 billion as of the end of the second quarter, down from $9.8 billion compared to end-2021, with around $1 billion linked to the consumer and commercial banking businesses, it said.