Citigroup Gets Approval to Sell Russia-Based Banking Unit

Russian President Vladimir Putin has authorized Citigroup Inc. C to sell its Russian banking unit, marking a significant step in the bank’s long-planned withdrawal from the country. The decision reflects Citigroup’s ongoing strategy to streamline global operations and exit non-core markets.

Details of C’s Russia Exit

A presidential order posted by the Kremlin confirmed that Citigroup has received the required approval to transfer its Russia-based division, known as AO Citibank, to Moscow-headquartered investment bank Renaissance Capital. The deal amount was not disclosed yet.

Citigroup stated that receiving Kremlin approval allows the bank to “move expeditiously” in completing operational preparations and securing the remaining regulatory clearances required to finalize the sale.

The divestiture covers the company’s remaining consumer and institutional operations in Russia. Over the past several years, sanctions, restricted capital movements and a limited pool of eligible buyers made the transaction increasingly complex. Citigroup has already closed nearly all institutional services in the market and, by 2024, had shut its final retail branch and deactivated all local debit cards.

As of September 2025, the company still had roughly $13.5 billion in exposure tied to Russia, the majority of which were corporate dividends that the Russian government would not allow Citigroup to remit. The sale is expected to further speed up C’s operational wind-down in the country.

Notably, the transaction still requires approval from U.S. regulators, and if cleared, it would cover the entirety of C’s remaining operations in Russia, spanning both its consumer division and its scaled-down institutional business.

Citigroup's Prior Efforts to Streamline Global Operations

Citigroup has been reshaping its global footprint under CEO Jane Fraser’s transformation strategy, which emphasizes strengthening core businesses and reallocating capital toward higher-return areas such as wealth management.In September 2025, the company announced an agreement to sell a 25% stake in Banamex to a Mexican business leader, reaching a milestone toward full divestiture and deconsolidation of Banamex. Earlier, in May 2025, it announced an agreement to sell its consumer banking business in Poland.

The company also sold its China-based onshore consumer wealth portfolio in June 2024 and, in December 2024, completed the separation of its institutional banking operations in Mexico from its consumer, small-business, and middle-market units. As part of its global streamlining strategy, the bank also continues to advance the wind-down of its Korea consumer banking operations while advancing plans for an IPO of its Mexican consumer and small-business operations.

Collectively, these initiatives support C’s broader transformation strategy by freeing up capital for investment in key wealth hubs such as Singapore, Hong Kong, the UAE, and London. Citigroup expects to achieve $2–$2.5 billion in annualized run-rate savings and deliver a projected 10–11% return on tangible common equity by 2026. These underscore management’s confidence in the long-term benefits of the company’s restructuring efforts.

C Price Performance & Zacks Rank

Shares of Citigroup have gained 46.4% over the past year compared with the industry’s growth of 28.9%.

Currently, C carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Financial Firms

In September 2025, the Wall Street Journal, as cited by Reuters, reported that Bank of Montreal BMO initiated a process to sell some of its U.S. branches, which hold approximately $6 billion in deposits. The move highlights the Canadian lender’s efforts to exit select geographies and streamline its U.S. retail footprint following its largest acquisition in 2023.

According to the report, the BMO is weighing the divestiture of branches in states such as Wyoming and the Dakotas. The branches may be sold either individually or in clusters and could include associated loans. However, the plans are still preliminary and may not ultimately result in a transaction.

In June 2025, Reuters reported HSBC Holdings PLC HSBC is set to close its business banking division in the United States. This announcement comes amid the company’s ongoing business simplification efforts and accelerated shift toward the Asia and Middle East regions.

This move was likely to affect nearly 4,500 HSBC clients. The bank will be aiding the impacted clients in transitioning to a suitable alternative provider and will continue to serve some clients in Mid-Market and Global Network Banking Business.

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