Citigroup sells its assets to Uralsib and leaves Russia
2022.12.12 10:19
Citigroup sells its assets to Uralsib and leaves Russia
Budrigannews.com – On Monday, the acquisition of a portfolio of consumer loans from Citigroup Inc. (NYSE:) by the Russian commercial bank Uralsib was concluded. ‘s Russian unit, as the major U.S. lender reduces its exposure to Russia in preparation for complete withdrawal.
The deal’s financial details have not been made public by either bank.
In a statement, Uralsib stated, “The acquired portfolio includes unsecured consumer loans, which will be serviced by Uralsib Bank from the moment of purchase.”
More Investors believe recovery crypto market in 2023
The loan portfolio, according to private-owned Uralsib, one of Russia’s top 30 banks by assets, has high credit quality, allowing it to expand its client base in Moscow and St. Petersburg.
Investors from so-called unfriendly nations are prohibited from selling shares in important energy projects and banks until the end of the year by a decree signed by President Vladimir Putin on August 5. In certain circumstances, Putin has the authority to grant special waivers for deals to proceed.
In October, Citi stated that it would also sell a portfolio of credit card balances if customers consented.
As part of an overhaul led by Chief Executive Jane Fraser, Citi agreed last year to shut down its retail operations in Russia. After Russia began its “special military operation” in Ukraine on February 24, the scope of the exit was expanded in March to include its commercial banking business.
In August, the bank said it was hoping to cause about $170 million in charges throughout the following year and a half as it slowed down purchaser and business banking tasks in the country.
