Citigroup to Wind Down Russia Consumer Banking Operations
Citigroup will officially wind down its consumer banking and local commercial banking activities in Russia this quarter, the bank said Aug. 25. Citi said the wind-down, spurred by U.S. and multilateral sanctions against Russia for its invasion of Ukraine, will affect 15 branches and a range of deposits, investments, loans and cards. “The wind-down will be carried out in compliance with applicable regulations and Citi will honor its obligations to clients, employees and partners,” the bank said. “As previously noted, Citi continues to support its multinational institutional clients, particularly those which are undergoing the complex task of winding down their operations in Russia.”
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Citi CEO-Legacy Franchises Titi Cole said the decision “makes the most sense given the many complicating factors in the environment.” David Livingstone, CEO for Europe, Middle East and Africa, said the decision is “aligned with other actions, including limiting our service offering, reducing our exposures, and not soliciting any new business or clients.” The bank said it plans to incur about $170 million in costs, mostly over the next 18 months, “largely driven by restructuring, vendor termination fees and other related charges.”