Expansion of CitiGroup's Withdrawal from Major US Bank Businesses

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Citigroup, the largest American bank operating in Russia, is expanding its plans to withdraw from the local market. This move joins the global financial firms' boycott in response to Russia's invasion of Ukraine.

Edward Skyler, Citigroup's Global Head of Communications, stated in a press release on the 14th (local time) that "we will expand the scope of our withdrawal from the Russian market," according to the New York Times.

In April last year, Citigroup announced it would sell its consumer finance division in Russia as part of a business strategy restructuring. However, following Russia's invasion of Ukraine on the 24th of last month, the bank decided to also suspend its corporate banking and other financial product operations.

Vice President Skyler said, "We will stop acquiring new customers and exploring new business opportunities in Russia and assist multinational companies in ceasing their operations."

Citigroup, which employs about 3,000 people locally, plans to continue supporting all its employees and maintain services for existing customers.

Earlier, Goldman Sachs became the first global investment bank to announce its withdrawal from Russia on the 10th, followed by JP Morgan Chase joining the exit on the same day.

American banks are considered to have a lower business exposure in Russia compared to European banks, so the burden of withdrawal is not seen as significant. However, Citigroup, with its extensive global network, has a larger scale of operations in Russia than other banks.

As of the end of last year, Citigroup's credit exposure to the Russian market (the amount related to a specific country or company) was $9.8 billion, the highest among major global banks.

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