Citigroup’s board has formally approved the sale of AO Citibank, the last remaining entity in its Russian business portfolio. This clearance follows more than three years of internal review and due diligence and sets the stage for closing the transaction in the first half of 2026. Management expects to transfer approximately 200 legal entities and 8,000 employees as part of the deal. Regulatory sign-off in Russia and other jurisdictions remains the final hurdle, with Citigroup targeting completion by June 30, 2026.

Citigroup has signaled that it will incur a pretax loss of about $1.2 billion on the sale, which it plans to recognize in the fourth quarter of 2025. This charge reflects asset write-downs, transaction fees and foreign exchange adjustments tied to the deconsolidation of AO Citibank’s balance sheet. While the loss will weigh on Q4 earnings, management has emphasized that exiting Russia will free up approximately $10 billion of risk-weighted assets and reduce geopolitical risk exposures going forward.