Izvestia: Citigroup cannot sell Russian business due to problems with IT system

The American Citigroup cannot sell the Russian Citibank due to difficulties in transferring the IT system to the buyers, on which all processes are tied. About it told Izvestia, citing sources.

According to the publication, the problem lies in the fact that IT systems use software from American Cisco and Oracle, which in 2022 stopped its distribution in Russia. In addition, it is not possible to separate Citibank’s IT capacities from the general infrastructure of Citigroup, which is located abroad.

As one of the sources noted, due to problems with the transfer of IT equipment, three financial structures in Russia have already refused to buy Citibank, their names are not specified.

Citibank declined to comment, but noted that they are acting in accordance with plans that were announced last year. In particular, on August 25, 2022, the company reportedthat she decided to wind down her retail business, as well as her business for working with small and medium enterprises (SME) in Russia. The winddown, which was scheduled to begin in Q3 2022, was expected to affect approximately 2,300 employees across 15 divisions, including affiliates, as well as retail services such as consumer loans, credit cards, deposits, brokerage and custody services. for individuals.

Back in April 2021, Citigroup announced plans to curtail its retail business in Russia and 13 other countries. Then Citibank was also interested in retail Alfa Bank“Tinkoff“, VTBbut the deal never took place. After the start of a special military operation on the territory of Ukraine, Citigroup, like many foreign banks, announced a likely withdrawal from Russia and the closure of not only the retail direction, but also the business of the commercial bank department. In addition, the company announced the reduction of operations and presence in Russia, including the attraction of new customers was stopped. In early July, the Financial Times reported that the group was negotiating the sale of part of its business in Russia with several Russian companies, including Expobank and Reso-Garantiya insurance company.