Citigroup cleared to exit Russia as Kremlin keeps tight grip on company departures

Russian President Vladimir Putin has authorised US banking giant Citigroup Inc. to sell its Russian banking unit, a move that signals a further retreat of Western financial institutions from Moscow amid heightened geopolitical tensions.

A Kremlin-posted presidential order revealed on Wednesday states that “Citigroup Inc. is permitted to sell its bank inside the country” to Russian investment bank Renaissance Capital.

The document, which provided no further sale details, follows a spate of Kremlin-approved exits this year.

Earlier, Putin signed decrees enabling Goldman Sachs Group's Russian business to pass to Balchug Capital and Natixis to offload its Russian operations. In January, Dutch lender ING Groep NV agreed to sell its local operations to Global Development JSC.

For its part, Citigroup has been winding down its institutional banking presence in Russia and said that, as of September, it still had approximately US $13.5 billion (€12.56 bn) in exposure tied to the country—up from $9.1 billion (€8.46 bn) a year earlier.

The exposure increase was largely driven by corporate dividends received during the third quarter.

Renaissance Capital, one of Russia’s oldest investment banks, rose to prominence helping companies list in London and Moscow after the Soviet era.

In 2022, it began winding down its overseas offices in London, New York and Johannesburg, though its Russian business has proceeded uninterrupted.

The sale approval could accelerate Citigroup’s departure from the Russian market and reflects the Kremlin’s increasingly direct role in structuring Western exits amid ongoing geopolitical pressure.