The last major American bank is fleeing Russia

European banks are also winding down their business.

The American Citibank, which was among the TOP-20 largest banks in Russia by assets, is finally winding down the remnants of its business in the country, writes The Moscow Times .

It is noted that the Russian “subsidiary” of Citi (“Citibank”) will cease accruing interest income, as well as supporting (opening, maintaining or servicing) all savings and accumulation accounts from November 1.

Last year, the bank stopped servicing all its debit cards, as well as operations using the Central Bank of the Russian Federation’s fast payment system, transfers, cash withdrawals at terminals, and payment for purchases using QR codes. In November of last year, Citibank closed its last branch for retail customers in Moscow.

Citigroup planned to sell its retail business in Russia in early 2021. After the full-scale invasion of Ukraine by the Russian Federation, the company effectively decided to withdraw from the market. The volume of loans issued by the bank has decreased by 98% since the beginning of 2022, and the volume of deposits of individuals and funds in corporate accounts has decreased by 90-150 times.

Along with the American bank, European banks are also winding down their Russian business. For example, Raiffeisen Bank stopped transferring money abroad for most clients in August last year. Italian UniCredit stopped opening accounts for new corporate clients in October and increased account servicing fees 8-10 times. The European Central Bank is demanding that banks sharply reduce their activities in Russia and completely exit the market.

Foreign banks in Russia – top news

Austria’s Raiffeisen Bank International is trying to wind down its operations in Russia . However, according to people familiar with the situation, Russian regulators are not allowing Raiffeisen to leave because it is one of the few access points to the international interbank payment system Swift.

Meanwhile, the son-in-law of the Hungarian Prime Minister, István Tiborc, is negotiating the purchase of the Russian branch of Raiffeisen Bank . The Russian presidential administration and the Russian Central Bank are involved in preparing such a deal.

(c)UNIAN 2025