Citigroup said on Monday that its board has approved the sale of its Russian subsidiary, AO Citibank, to Renaissance Capital, a transaction expected to result in a pre-tax loss of roughly $1.2 billion, largely due to currency translation effects.
According to a filing with the U.S. Securities and Exchange Commission, the deal is anticipated to close in the first half of 2026.
In a separate statement, Citi said the approval will lead to a fourth-quarter 2025 pre-tax loss, primarily driven by currency translation adjustment (CTA) losses, which will remain recorded in accumulated other comprehensive income (AOCI) until the transaction is completed.
CTA reflects gains or losses arising from converting a foreign subsidiary’s financial statements into the parent company’s reporting currency, while AOCI represents a component of shareholders’ equity that captures certain unrealised gains and losses not reflected in net income.
Citi said the overall impact of the transaction would be neutral to its common equity tier 1 capital. However, the final loss could change, particularly due to fluctuations in foreign exchange rates.
The bank will classify its remaining Russian operations as “held for sale” beginning in the fourth quarter of 2025.
The transaction follows approval last month by Russian President Vladimir Putin for Renaissance Capital to acquire Citibank’s Russian operations. Citi had announced in August 2022 that it would exit its consumer and local commercial banking businesses in Russia as part of efforts to reduce its exposure in the country.
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