• Citigroup has received Russian regulatory approval, including from President Putin, to fully wind down its remaining banking operations in the country by November 1, 2025.
  • The exit marks the culmination of a strategic retreat that saw Citi's Russian loan portfolio shrink by 98% and deposits plummet by 90 to 150 times since early 2022.
  • The move underscores the accelerating financial decoupling between Russia and the West, with other major Western lenders facing similar pressures to reduce exposure.

Citigroup Inc. has secured the necessary approvals from Russian authorities, including a sign-off from President Vladimir Putin, to completely shutter its remaining banking operations in the country, according to people familiar with the matter. The bank is now set to fully exit the Russian market by November 1, 2025, bringing an end to a protracted and complex withdrawal process.

The approval allows Citi to proceed with winding down its local subsidiary, Citibank Russia, which was once one of the largest Western lenders in the country. Efforts to restructure its operations have been underway since 2021, but the bank's plans shifted toward a full operational shutdown following Russia's invasion of Ukraine in 2022 and the subsequent escalation of international sanctions.

A spokesperson for Citigroup declined to comment on the specific approvals but reiterated the bank's previous statements regarding its commitment to exiting the Russian market. The bank's current presence is now limited strictly to fulfilling residual legal and regulatory obligations, with its commercial banking activities having been largely dormant.

The scale of the retreat is stark. Since the beginning of 2022, Citigroup’s Russian subsidiary has seen its loan portfolio contract by 98%, while deposits dropped precipitously by 90 to 150 times, according to financial disclosures. This dramatic reduction reflects both the bank's active wind-down and the challenging environment for Western financial institutions.

Citigroup's exit is emblematic of a broader trend. Other major banks, including Raiffeisen Bank International, UniCredit, and Societé Générale, have also been curtailing their Russian operations under pressure from regulators like the European Central Bank to lower their exposure. The Russian banking sector is consequently undergoing a significant shift toward domestic operators.

The process has not been without its complications. Sanctions have complicated asset sales, with technical issues, such as the inability to transfer proprietary technologies due to IT embargoes on companies like Cisco and Oracle, stalling some transactions. In some instances, Russian authorities have blocked sales of banking assets, seemingly to preserve strategic financial links.

Without the final approval from Russian authorities, the company would have been forced to maintain a costly and operationally complex skeleton presence indefinitely. The green light to fully wind down provides a clear, albeit extended, timeline for Citi's final departure. The bank's global restructuring, which includes the sale of other non-core units like its trust business, continues amid heightened regulatory scrutiny worldwide.