NEW YORK, Aug 25 — Wall Street giant Citigroup Inc will close its consumer and commercial banking businesses in Russia starting this quarter and expects to incur about US$170 million in charges over the next 18 months as a result, the company said today.
The US bank with the largest presence in Russia announced plans in April 2021 to leave the retail business as part of a broader departure from some overseas markets. It expanded the scope of that exit in March to include local commercial banking after Russia’s invasion of Ukraine, but has been unable to find a buyer for either business.will affect about 2,300 of Citi’s 3,000 employees in Russia across 15 branches, the bank said.
“It’s clear that the wind-down path makes the most sense given the many complicating factors in the environment.” The exit will affect deposit accounts, investments, loans and cards. Chief Executive Jane Fraser, who took the helm last year, has moved to simplify the Wall Street giant which has been shrinking its overseas footprint by exiting non-core markets, recently announcing agreements to sell its consumer businesses in Bahrain and India. — Reuters