Citigroup Halts Russia Retail Banking Operations... Unable to Find Buyer Due to Sanctions

[Photo by TASS Yonhap News]

[Asia Economy Reporter Park Byung-hee] U.S. bank Citigroup announced on the 25th (local time) that it ultimately failed to find a buyer for its Russian retail banking business and plans to discontinue the operation.

According to major foreign media, Citigroup stated that it plans to gradually wind down its Russian retail banking business over the course of more than two years.

Citigroup decided to withdraw from retail banking operations in 14 countries last April, including Russia at that time.

Citigroup sought potential buyers for its Russian retail banking business, but after Russia's invasion of Ukraine in February this year and subsequent Western sanctions, it was unable to find a suitable buyer.

Citigroup also decided to cease operations targeting domestic Russian companies in the corporate banking sector.

Citigroup expects that the decision to close its Russian operations will result in additional costs of approximately $170 million (about 230 billion KRW).

Citigroup entered the Russian market in 2002 and currently operates banks targeting wealthy clients in 10 cities across Russia. It serves 500,000 Russian customers and employs 2,300 local staff.

Citigroup stated that it will continue its investment banking and cash management services.

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