Citigroup is reportedly exiting the country after failing to sell its local units
© Getty Images / da-kuk
Banking giant Citigroup will wind down its consumer and commercial operations in Russia, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
According to the report, the US multinational expects to incur about $170 million in charges over the next 18 months.
In May, media reported that Citigroup was exploring the possibility of swapping assets with Russian banks to avoid hefty write-downs related to quitting the sanctions-hit country. Citigroup was reportedly holding “multiple conversations” with medium-sized Russian banks to sell its consumer operations and part of its commercial undertakings in the country, but the negotiations apparently failed and will not be resumed.
Citigroup has disclosed its Russia exposure was $8.4 billion, as of June 30.
A number of foreign companies have decided to exit Russia after Western sanctions made it difficult to continue working in the country, following the outbreak of the Ukraine conflict in February.
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