Citigroup will post a big loss from the sale of its remaining business in Russia, the US banking giant announced on Monday.

The lender announced plans to wind down its business in Russia in August 2022, amid an exodus of Western firms due to sanctions imposed on Moscow over the Ukraine conflict. The assets of its Russian unit, AO Citibank, at the time totaled around $10 billion, while the cost of leaving Russia was estimated at $170 million. In December 2022, the lender sold its portfolio of ruble-denominated consumer loans to Russia’s Uralsib bank.

The sale of the unit to Russia’s Renaissance Capital is expected to result in a pre-tax loss of about $1.2 billion, the bank said.

“The approvals result in a pre-tax loss on the sale for the fourth quarter of 2025, largely related to the currency translation adjustment (CTA) losses that will also remain in accumulated other comprehensive income until closing,”the bank said in a separate statement.

CTA is an accounting method that captures gains or losses from converting a foreign subsidiary’s financial statements from its local currency to the parent company’s reporting currency.

Citigroup said the loss could change further as a result of foreign exchange movements. The bank will classify its remaining Russian operations as“held for sale”as of the fourth quarter of 2025.

Last month, Russian President Vladimir Putin granted permission for Renaissance Capital to acquire Citigroup’s Russian operations. The deal is expected to close in the first half of 2026, according to a filing with the US Securities and Exchange Commission.

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