Russian President Vladimir Putin has approved Citigroup’s plan to sell its Russia-based unit to emerging markets investment bank Renaissance Capital, marking a major step in the US lender’s ongoing global restructuring.
The decree, signed early Wednesday, gives formal consent for the transfer of Citigroup’s Russian operations, known as AO Citibank. The sale is part of Citi’s broader effort to streamline its international business footprint.
“With this receipt of the final required Russian approval by Renaissance Capital, Citi is now moving expeditiously to complete the final steps of its preparation to transition the operations to the buyer and obtain the remaining necessary approvals,” a Citigroup spokesperson said in emailed comments.
Citi confirmed the authorisation from the Russian Presidential Office earlier on Wednesday. Following the news, Citigroup’s shares rose as much as 2.6% in early trading and have climbed 47% since the start of 2025.
The bank first announced plans to sell its Russian consumer division in 2021 but expanded the sale to include its full local subsidiary after the outbreak of the Russia-Ukraine conflict the following year.
Sanctions and regulatory challenges have complicated the divestment process, making an outright sale difficult to finalise.
“Citi ended nearly all of the institutional banking services offered in Russia as of March 31, 2023. Today, our services are only those necessary to fulfill our remaining legal and regulatory obligations as we continue to wind down our business in Russia,” the spokesperson added.
As of the end of September, Citi reported around $11.7 billion in client exposure to Russia, primarily tied to corporate dividends that the Russian government has so far prevented the bank from transferring.
The deal still requires clearance from US regulators and would include Citi’s remaining consumer and institutional banking activities in Russia.
Putin’s approval, however, represents a key milestone in Citi’s broader transformation under CEO Jane Fraser, who has led efforts to offload 14 overseas units as part of a plan to simplify operations, cut costs, and improve profitability.
The move comes just weeks after Citi’s board voted to appoint Fraser as chair while granting her a $25 million restricted stock bonus, which is a sign of confidence in her progress on the bank’s turnaround strategy.
Since Fraser took over, Citigroup has sold nine international subsidiaries and is in the final stages of completing the sale of its Polish arm. The lender also plans to exit operations in Korea and China in the coming months.
