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Citigroup Inc (NYSE: C) on Thursday said the Wall Street giant will close its consumer and commercial banking businesses in Russia starting this quarter and expects to incur around $170 million in charges over the next 18 months.
In April 2021, the US bank announced plans to exit the retail business from 13 counties, including Russia, as part of a broader departure citing that the operation was not profitable.
It expanded the scope of that exit in March to include Russia’s commercial banking after Moscow invaded Ukraine but has been unable to find a buyer for either business.
Citigroup said the closure will affect about 2,300 of the bank’s 3,000 employees in Russia across 15 branches.
The financial giant has disclosed that its Russia exposure was $8.4 billion as of June 30.
“We have explored multiple strategic options to sell these businesses over the past several months,” Titi Cole, Citi’s chief executive officer of legacy franchises, said in a statement.
“It’s clear that the wind-down path makes the most sense given the many complicating factors in the environment.”
Citigroup also said it will continue to support its multinational institutional clients, particularly those which are undergoing the complex task of winding down their operations in Russia.
Picture Credit: FT
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