Citigroup announces it has nearly $10 billion in deals involving Russia

Citigroup said it has nearly $10 billion in exposure to Russia through loans, government debt and other assets, partly held by its retail bank in the country the group wants to sell, it said.

The disclosure, made in Citi’s annual report on Monday, underscores that the New York-based bank’s business is more directly linked to events in Russia than any of its Wall Street rivals, according to the powers that be. Westerners tighten financial sanctions on the country after President Vladimir Putin’s decision to invade Ukraine.

The exposure, based on end-2021 figures, was comprised of $8.2 billion (R$42.3 billion) in its investment banking and retail banking operations in Russia, through corporate loans and consumer debt, local government debt, reverse repo agreements and deposits at Russia’s central bank, which was hit by sanctions on Sunday.

Citi has an additional US$1.6 billion (R$8.22 billion) in exposure to other financial counterparties in the country. “Citi continues to monitor the current Russia-Ukraine geopolitical situation and economic conditions, and will mitigate its exposures and risks as appropriate,” the bank said in the regulatory document.

The exposure is a tiny fraction of Citi’s overall business, with the bank holding $2.29 trillion in assets at the end of last year. However, it is an unwanted distraction ahead of an investor day on Wednesday, when Jane Fraser, its chief executive since early last year, will outline her roadmap for the bank.

Part of Fraser’s strategy has been to exit about a dozen markets in its extensive international retail network, including Russia. The bank said in the document that it is still trying to exit the Russian retail market.

Translated by Luiz Roberto M. Gonçalves