WASHINGTON (dpa-AFX) - Citi confirmed that it has obtained the necessary internal approvals to move forward with the planned sale of AO Citibank, which represents Citi's remaining operations in Russia, to Renaissance Capital.
The transaction is expected to be signed and closed in the first half of 2026, subject to regulatory approvals and other customary conditions.
The approvals result in a pre-tax loss on sale for the fourth quarter of 2025, primarily related to currency translation adjustment (CTA) losses. These losses will remain in Accumulated Other Comprehensive Income (AOCI) until the closing of the transaction. The cumulative impact of CTA recorded in the loss on sale during the fourth quarter, along with amounts released from AOCI upon closing, will be capital neutral to Citi's CET1 Capital.
The loss on sale remains subject to potential changes, including those driven by foreign exchange movements. However, Citi expects the overall divestiture of its remaining business operations in Russia to provide a benefit to its CET1 Capital, largely due to the deconsolidation of associated risk-weighted assets.
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