Citigroup said on Wednesday it had completed the sale of its former Russian subsidiary to Renaissance Capital, finalising its withdrawal from the country after nearly four years of winding down operations.

The transaction, which has received all necessary regulatory approvals, marks Citi’s full exit from Russia and includes all remaining businesses and about 800 employees. The bank first announced plans to leave its Russian consumer business in April 2021 and expanded the process in March 2022 to cover other lines following the invasion of Ukraine.

Citi said the divestiture is expected to increase its Common Equity Tier 1 capital by about $4 billion in the first quarter of 2026. The benefit stems from the deconsolidation of risk-weighted assets, a reduction in disallowed deferred tax assets and the release of a currency translation adjustment loss.

The bank added that while the first-quarter boost will be significant, the cumulative impact of the previously reported $1.6 billion currency translation adjustment loss is regulatory capital neutral.

Ernesto Torres Cantú, head of international at Citi, said: “We’ve now completed the final steps in Citi’s exit from Russia, a process that began in March 2022. We greatly appreciate the professionalism and hard work of our colleagues throughout this process.”

Shares in Citi rose 2.4 per cent in morning trading in New York following the announcement.

Mike Mayo, analyst at Wells Fargo, said in a note to clients that the Russia exit advances Citi’s broader international divestiture plan, which now hinges on additional stake sales in its Mexican business. The Russia disposal was expected in the spring but arrived “on the earlier side”, he wrote, adding that the move reinforces his expectation that the bank will exit its consent order this year.

Citi has been reshaping its global footprint under chief executive Jane Fraser, retreating from several consumer markets to focus on wealth management and institutional banking. The completion of the Russia sale removes one of the more complex remaining elements of that strategy.

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