The US bank Citigroup will leave Russia in protest of the war in Ukraine by closing all of its remaining branches and consumer banking operations there. The decision, which has an impact on 2,300 employees in the nation, comes after Western companies left the country due to the conflict.
The largest US bank in Russia, Citi, announced its intention to leave back in April. However, it has been making fruitless attempts to sell its company.
According to a spokesperson, Citi would continue to support its multinational institutional clients in the nation even though its local consumer business would shut down.
"Particularly those which are undergoing winding down their own operations in the country," they said.
The bank, which has 15 locations in Russia, anticipates losing about $170 million (£140 million) due to the exit over the following 18 months.
"We have explored multiple strategic options to sell these businesses over the past several months," Citi's chief executive Titi Cole said.
"It's clear that the wind-down path makes the most sense given the many complicating factors in the environment."
The bank stated that in order to lessen its exposure to Russia as part of the withdrawal, which will start in the upcoming months, it will keep actively pursuing sales of "certain Russian consumer banking portfolios." Citi's remaining exposure to Russia was $8.4 billion as of the end of June.
The bank stated in April 2021 that it would close many of its retail locations, but after the Ukraine War broke out, the plans were expanded to include the withdrawal of all commercial banking activities.
It joins countless other companies that have left Russia, either because doing business there is no longer possible due to Western sanctions or moral considerations.
Some of the brands that are still around are Starbucks, Amazon, McDonald's, and Apple.
The United States forbade its citizens and companies from doing business with Russia's wealth fund, finance ministry, and central bank in February. The decision would have an impact on customers' deposit accounts, investments, loans, and credit and debit cards, according to the central bank of Russia.
(Source:www.cnbc.com)
The largest US bank in Russia, Citi, announced its intention to leave back in April. However, it has been making fruitless attempts to sell its company.
According to a spokesperson, Citi would continue to support its multinational institutional clients in the nation even though its local consumer business would shut down.
"Particularly those which are undergoing winding down their own operations in the country," they said.
The bank, which has 15 locations in Russia, anticipates losing about $170 million (£140 million) due to the exit over the following 18 months.
"We have explored multiple strategic options to sell these businesses over the past several months," Citi's chief executive Titi Cole said.
"It's clear that the wind-down path makes the most sense given the many complicating factors in the environment."
The bank stated that in order to lessen its exposure to Russia as part of the withdrawal, which will start in the upcoming months, it will keep actively pursuing sales of "certain Russian consumer banking portfolios." Citi's remaining exposure to Russia was $8.4 billion as of the end of June.
The bank stated in April 2021 that it would close many of its retail locations, but after the Ukraine War broke out, the plans were expanded to include the withdrawal of all commercial banking activities.
It joins countless other companies that have left Russia, either because doing business there is no longer possible due to Western sanctions or moral considerations.
Some of the brands that are still around are Starbucks, Amazon, McDonald's, and Apple.
The United States forbade its citizens and companies from doing business with Russia's wealth fund, finance ministry, and central bank in February. The decision would have an impact on customers' deposit accounts, investments, loans, and credit and debit cards, according to the central bank of Russia.
(Source:www.cnbc.com)
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