Russian President Vladimir Putin has signed a decree allowing the American financial group Citigroup Inc. to sell its bank operating in Russia to the investment company Renaissance Capital. The corresponding document was published on the official government website on Wednesday.
The decree does not specify details of the deal — such as its value, the terms of the share transfer, or the timeline for completion. However, the very fact of the president’s signature indicates that the authorities have formally approved the exit of one of the largest U.S. banking institutions from the Russian market.
Citigroup announced back in August 2022 its intention to wind down retail and commercial operations in Russia. This decision was part of a global effort to reduce exposure in markets with elevated geopolitical risks, as well as a response to the situation following the start of Russia’s military operation in Ukraine.
After February 2022, when dozens of Western companies began rapidly withdrawing from Russia, the Kremlin introduced a strict approval procedure for such transactions. According to the presidential decree, any sale of assets belonging to companies from so-called “unfriendly countries” had to be approved by a special government commission.
According to Bloomberg, this mechanism came with a number of restrictive conditions: foreign companies were required to sell their assets at a steep discount and make mandatory contributions to the Russian budget, often amounting to as much as 10% of the deal’s value. These measures were intended not only to curb the outflow of capital but also to partially offset the economic impact of sanctions.
The approval for Citigroup’s sale of its Russian unit can be seen as one of the final stages of the exit of American banks from Russia. Analysts note that this step suggests the Kremlin is gradually completing the process of “nationalizing” Western assets and seeking to transfer them into the hands of friendly investors — in this case, the Russian investment firm Renaissance Capital.
Thus, approval of the deal at the highest level reflects not only an effort to regulate the withdrawal of Western capital but also Moscow’s broader intention to strengthen the domestic financial sector by reallocating assets to Russian players.
This article was prepared based on materials published by Bloomberg. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
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