American banking giant Citigroup has received the Kremlin's permission to sell its subsidiary bank in Russia. Renaissance Capital will become the buyer of the asset.
The corresponding decree, signed by Russian President Vladimir Putin, was published on November 12. Additional details of the deal are not contained in the document. Now Western companies wishing to leave the Russian market, need to obtain permission and meet a number of requirements, including significant discounts on the sale of assets and mandatory contributions to the Russian budget, explains Bloomberg.
Citigroup shares were adding 0.4% at the New York premarket, up 43% YTD and above the $100 a share level for the first time since 2008.
Citigroup remained one of the largest Western banks in the Russian market. Back in 2021, the US company announced that it would exit its retail business in Russia as part of its planned exit from non-core markets. In 2022, the group announced an almost complete shutdown of its Russian subsidiary. According to the company's statement in August 2022, Citigroup estimated the costs associated with leaving Russia at $170m, mainly due to restructuring costs and termination payments to suppliers.
This article was AI-translated and verified by a human editor
