Citigroup estimated the cost of curtailing part of the business in the Russian Federation at $170 million

American financial corporation Citigroup announced the beginning of the curtailment of the retail business and the business of working with Russian small and medium-sized enterprises (SMEs). At the end of the second quarter of 2022, the presence of Citigroup in Russia in financial terms was estimated at $8.4 billion (against $9.8 billion at the end of 2021). The cost of winding down part of the business is estimated at $170 million.

Citigroup announced plans to sell its retail business in Russia and a number of other countries even before the military operation in Ukraine, in April 2021. In March 2022, it was decided to curtail the business of working with SMEs in the Russian Federation. Costs of $170 million are forecast primarily over 18 months, “principally due to restructuring costs, contract closures with suppliers and other process-related payments.”

The curtailment of business will affect about 2.3 thousand employees and 15 departments, including the company’s branches. Consumer loans, credit cards and deposits, brokerage and custody services for individuals will not be available. The company intends to sell “certain portfolios of retail business.”

“The process of winding down the retail and Russian SME business will begin this quarter … The process will proceed in accordance with applicable regulatory requirements and in compliance with the company’s obligations to its customers, employees and partners,” the company said in a statement. , which was received by Kommersant.

Citigroup disclosed the size of its Russia-related assets in March. The company said they were about $10 billion, more than previously known, according to Reuters. According to reports, Citigroup already then singled out $1.9 billion to cover possible losses associated with the withdrawal from Russia and the events in Ukraine.

Leonid Uvarchev