The long road out of Russia for Citigroup has reached a decisive turn. The bank said Monday its board has signed off on the sale of its Russian subsidiary, AO Citibank, to Renaissance Capital, a move expected to result in a pre-tax loss of roughly $1.2 billion, driven largely by currency translation effects.
The transaction, disclosed in a regulatory filing, is slated to close in the first half of 2026, marking another milestone in Citi’s retreat from the country following years of geopolitical and financial pressure.
Currency Translation Drives the Hit
Citigroup said the approvals will lock in a pre-tax loss in the fourth quarter of 2025, stemming primarily from currency translation adjustment losses. Those losses will remain parked in Accumulated Other Comprehensive Income until the deal formally closes.
In plain terms, currency translation adjustments reflect the gains or losses that arise when a foreign subsidiary’s financial statements are converted from its local currency into the parent company’s reporting currency. Accumulated Other Comprehensive Income, or AOCI, sits within shareholders’ equity and captures certain unrealized gains and losses that bypass the income statement.
Despite the headline loss, Citi said the cumulative impact of the transaction would be capital neutral for its common equity tier 1 ratio, a key measure of bank strength.
