Putin Authorizes Sale of Citigroup's Russian Operations to Renaissance Capital

Russian President Vladimir Putin signed a decree on Wednesday that officially permits the sale of Citigroup's operations in Russia to Renaissance Capital. This move signifies the conclusion of the U.S. bank's presence in the Russian market, following its announcement to exit over two years ago.

In August 2022, Citigroup revealed plans to cease its banking services for individuals and businesses in Russia, a decision prompted by the Russian invasion of Ukraine and a wave of Western companies exiting the Russian market.

The presidential decree released today did not disclose specific details regarding the transaction, such as its financial value or timeline for execution.

This decision concludes a lengthy period of regulatory restrictions that Citigroup faced since announcing its intention to withdraw, as it was under strict oversight from Russian authorities.

Renaissance Capital is one of Russia's leading financial institutions, specializing in investment and banking services, making it a suitable candidate to take over Citigroup's assets in the country.

The transaction underscores the Kremlin's stringent management of foreign company exits, as such sales now require direct presidential approval amid escalating geopolitical tensions and Western sanctions imposed on Moscow.