Citigroup says operating Russia consumer business on ‘more limited basis’


A Citibank ATM is seen in Los Angeles, California, March 10, 2015. REUTERS/Lucy Nicholson

Register now for FREE unlimited access to Reuters.com

NEW YORK, March 9 (Reuters) – Citigroup Inc (C.N) said on Wednesday it is operating its Russian consumer business on a more limited basis following the country’s invasion of Ukraine, while sticking with its previous plans to divest the franchise.

In a post on a Citigroup site the bank also said it is supporting its corporate clients in Russia as they suspend and unwind their business there.

“With the Russian economy in the process of being disconnected from the global financial system as a consequence of the invasion, we continue to assess our operations in the country,” Edward Skyler, executive vice president for global affairs wrote in the post.

Register now for FREE unlimited access to Reuters.com

Citigroup has said it has almost $10 billion of total exposure in Russia. Its chief financial officer said last week that in a “severe stress scenario” its loss might be half that. read more

Citigroup announced nearly a year ago that it intended to exit its consumer banking business in Russia. Analysts say it may not be able to sell the business in light of U.S. sanctions and could be forced to wind it down.

Citigroup said its clients include American and European multi-national corporations.

Moscow has called its action in Ukraine a “special operation.”

Register now for FREE unlimited access to Reuters.com

Reporting by David Henry in New York
Editing by Chris Reese

Our Standards: The Thomson Reuters Trust Principles.



Source link