Citigroup Expanding Russia Exit; Credit Suisse, UniCredit Mulling Options: Sanctions Update
3/15/2022
Citigroup said Monday it would accelerate its plans to sell its Russia consumer division. In a short statement, Citigroup announced it had “now decided to expand the scope of that exit process to include other lines of business and continue to reduce our remaining operations and exposure.”
The bank also said it had decided to stop soliciting any new business or clients. “We are providing assistance to multi-national corporations, many of whom are undergoing the complex task of unwinding their operations,” according to Edward Skyler, executive vice president, global public affairs.
Last week, Citigroup said they were reviewing all options, saying “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.”
Meanwhile, at a Morgan Stanley conference Tuesday, Credit Suisse Group AG Chief Executive Officer Thomas Gottstein said the bank is reviewing its exposure to Russia but for now, is remaining in the country. ““We will have to see now over the next few months what this all means for our operation in Russia,” Gottstein said, according to Bloomberg. “I have not taken any decisions on that.”
The CEO of Italy’s second largest bank, UniCredit is reportedly also considering an exit from Russia.
“No conclusions can be drawn overnight, but we will report soon with more detail,” said UniCredit Chief Executive Officer Andrea Orcel at the same Morgan Stanley conference.
Related sanctions news:
- ECB sees economic spillover risks for banks From Russia turmoil (Bloomberg)
- EU, U.K. approve new Russia sanctions as divisions emerge on how to hurt Moscow further (WSJ)
- VTB Axes London workers as firm’s European exit accelerates (Bloomberg)
- Banking union is essential if the EU is to ride out future crises (Financial Times)