Reducing Activities: company scaling back some business operations while continuing others
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Citigroup is a US-American multinational investment bank and financial services corporation headquartered in New York City.
Reducing Activities: company scaling back some business operations while continuing others
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Global 500Today AO Citibank is one of the largest in terms of assets and the number of deposits. The bank serves more than 1 million private clients in more than 50 branches and more than 450 ATMs in 11 Russian cities. Citibank is introducing a 5% fee for USD and EUR cash deposits from August 15, 2023. As Western companies and international investors rushed to exit Russia amid the Ukraine invasion and the sweeping sanctions that followed, they were desperate to swap their rubles for dollars. For currency traders at firms including Goldman Sachs, Citigroup and JPMorgan Chase & Co., it was easy money: They found a way to scoop up greenbacks at a low price and then sell them to those fleeing clients for a healthy markup without running afoul of sanctions, people with direct knowledge of the transactions said. Citigroup Inc. has bought about $160 million of Russian aluminum from the London Metal Exchange, something many banks have refused to touch since the invasion of Ukraine. Russian Citibank has blocked customer dividends worth about $4.7 billion.
The company decided to stop soliciting any new business or clients. The company continue to reduce the remaining operations in Russia and expand the scope of the exit process but cautiously returned to the market for Russian government and corporate bonds and buy Russian debt. Citigroup on Friday, October 14 announced plans to shut down its institutional banking operations in Russia as Vladimir Putin’s assault on Ukraine stretches into its seventh month. Finding a buyer for Russian business proved near impossible. After exhausting all options, in August 2022 Citi started winding down both consumer and local commercial banking businesses in Russia, selling select consumer banking portfolios where possible and making sure their colleagues, clients and partners were supported during the wind down process. Continue to work with multinational clients to end nearly all institutional banking services by the end of Q1 2023. At that point, only operations in Russia will be those necessary to fulfill the remaining legal and regulatory obligations. Also, it was analized that Citibank cannot be sold due to problems with the IT system. Citibank will suspend the purchase of dollars and euros at the box office. Citibank is winding down its ATM network in Russia.