Citigroup disclosed on Monday that its board has authorized a plan to divest from its remaining business operations in Russia, anticipating a loss of approximately $1.1 billion in the process.

The American banking institution stated that it aims to finalize the sale in the first half of 2026, contingent upon regulatory approval.

“We will classify our remaining Russian operations as ‘held for sale’ starting in the fourth quarter of 2025,” the bank mentioned in a report filed with the U.S. Securities and Exchange Commission.

This action will lead to a post-tax loss being recorded in the current quarter, as indicated by Citigroup in its filing.

The operations still running under AO Citibank in Russia will be transferred to Renaissance Capital, a Moscow-based investment bank.

According to a report from Reuters, President Vladimir Putin recently granted authorization for Renaissance Capital to acquire Citibank’s Russian business.

Since the onset of the full-scale invasion of Ukraine, Russia has enacted stringent regulations for foreign companies wishing to withdraw, including significant asset sales, obligatory “exit taxes,” and government approvals, which complicate and elevate the costs of exiting the market.

Reporting from AFP contributed to this information.