Citigroup Cuts Russia Exposure as Sanctions Threaten

Citigroup Inc. (C), the U.S. bank with the most branches in Russia, again cut its exposure to the nation amid sanctions intended to end the unrest in Ukraine.

Total exposure fell 5.3 percent to $8.9 billion in the three months ended June 30, the New York-based bank said today in a quarterly regulatory filing.

“The ongoing instability in Russia and Ukraine has been a cause of concern to investors in Russian assets and parties doing business in Russia or with Russian entities, including as a result of the potential risk of wider repercussions on Russian trade and investment, including the effects from current or additional sanctions,” the bank said in the filing.

Lenders in the U.S. and European Union are doing less business with customers in Russia as stiffer sanctions against companies there threaten to slow the economy or prevent debt collection. Bank of America Corp., the second-biggest U.S. bank by assets, cut loans to customers in Russia by 41 percent in the first half of the year to $3.9 billion.

Citigroup, which has more than 50 branches in Russia, returned to the country in 1992 following the collapse of the Soviet Union, ending a 72-year absence.

To contact the reporter on this story: Dakin Campbell in New York at dcampbell27@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net Steven Crabill, Dan Kraut

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.