The financial conglomerate Citigroup will reduce the retail business in Russia. The process will begin this quarter: the group will cut more than 2,000 employees and close 15 branches. Total losses from the termination of Citigroup’s business in the country are estimated at $170 million.
Citigroup will completely stop its banking and retail client operations in Russia, the company said. They recalled that they had decided to reduce their presence in the country in 2021.
“Today’s decision is part of our ongoing efforts to scale back our operations in Russia,” said David Livingston, CEO of Citi Europe, Middle East and Africa.
The closure of the Citigroup business will begin with the dismissal of some 2.3 employees and the closure of 15 branches in Russia. Reducing the business in the country will cost the group 170 million dollars in a horizon of a year and a half.
At the end of 2021, Citigroup’s assets, loans and other financial positions in Russia were estimated at $9.8 billion. By the end of the second quarter of 2022, this amount had decreased to $8.4 billion.
Citigroup began considering options to exit the Russian market in May. It was noted that negotiations were carried out with banks that were not subject to the sanctions. Later it became known about the potential buyers of Citigroup’s business in Russia – these are Expobank and Reso-Garantiya.
Author:
Kirill Bilyk
Source: RB
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