Trying to reduce its operations and exposure, Citigroup will close its consumer and commercial banking businesses in Russia starting this quarter, the banks said on Thursday.
The bank expects to incur approximately $170 million in costs, primarily over the next 18 months, largely driven by restructuring, vendor termination fees and other related charges.
“We have explored multiple strategic options to sell these businesses over the past several months. It’s clear that the wind-down path makes the most sense given the many complicating factors in the environment,” Titi Cole, Citi’s CEO of Legacy Franchises, said in a statement.
Citi announced its plan to exit Russia consumer banking in April 2021 as part of a global strategy that included 14 markets in Asia, Europe, Middle East and Africa, and Mexico. In March 2022, Citi expanded the scope of its planned exit in Russia to include local commercial banking.
The wind-down is expected to affect approximately 2,300 employees and 15 branches in Russia.
Citi CEO Jane Fraser, who took the helm last year, has moved to simplify the Wall Street giant, which recently announced agreements to sell its consumer businesses in Bahrain and India.