Citigroup announces phase-out of retail business in Russia
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Citigroup has decided to wind down its retail and small and medium business (SME) business in Russia, informed company press office. The company will try to sell some portfolios of retail business during this process.
The process of winding down the business will begin in the third quarter of 2022. It will affect about 2,300 employees from 15 branches, including branches of companies, as well as retail services such as consumer loans, credit cards, deposits, brokerage and custody services for individuals. The process will take place in accordance with the requirements of regulators and obligations to customers, partners and employees.
“Obviously, due to complicating factors, the decision to wind down the Russian retail and SME business is the most prudent one. Throughout the process, we will support our employees, customers and partners who will be affected by this decision,” said Titi Cole, Head of Sellable and Non-Core Assets at Citigroup.
Citigroup’s financial presence in Russia was estimated at $8.4 billion at the end of Q2, but this figure is lower than at the end of Q2 2021, when the company’s financial presence was $9.8 billion.
The departure of Citigroup from Russia will cost about $170 million over the next year and a half, the company expects. The main costs will be spent on restructuring, closing contracts with suppliers and other payments.
American global financial corporation Citigroup (it owns Citibank) declared about the desire to sell its retail business in Russia as early as April 2021 in the summer of 2021 by Citibank were interested also Alfa Bank and “Tinkoff”, wrote RBC. In March, Citibank decided to expand the perimeter of the sale of business: in addition to the retail business, the business of the commercial bank department was added to the sale, and they also announced a reduction in operations and presence in the country, in particular, they stopped attracting new customers. In early June, it became known that Citigroup was negotiating the sale of part of its business in Russia with several Russian companies, including Expobank and Reso-Garantiya insurance company, wrote financial times.
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