Citigroup in talks with local buyers over sale of Russian ops - report

According to the Financial Times, the US bank is in talks with privately-owned Russian companies including Expobank and insurance company Reso-Garantia about plans to offload the consumer and commercial businesses.

It was also understood that Rosbank has expressed interest in a deal, but that's been thrown into doubt after the UK sanctioned its owner Vladimir Potanin this week.

The FT said Potanin’s interest in Citi’s assets is a new development after he said previously that he was not interested in buying any more banks after acquiring a stake in fintech TCS from fellow Russian billionaire Oleg Tinkov, who said he was forced into the sale by the Kremlin after criticising the war.

Citi is also winding down its corporate banking balances and operations as quickly as it can, but is continuing to work with its multinational clients that are also exiting the country after western sanctions made it all but impossible to remain in Russia, the FT said.

It cited sources as saying that Citi will probably keep its licence - although a final decision has not been made - and retain a stripped-down presence in Russia.