(RTTNews) - Citigroup Inc. (C) announced Thursday that it has decided to wind down its consumer banking and local commercial banking operations in Russia.
In connection with the wind-down plan, Citi expects to incur approximately $170 million in costs, primarily over the next 18 months, largely driven by restructuring, vendor termination fees and other related charges.
As part of the wind-down, Citi will also continue to actively pursue sales of certain Russian consumer banking portfolios. Actions to facilitate the wind-down are expected to commence this quarter.
The wind-down is expected to affect approximately 2,300 employees and 15 branches. Consumer products and channels affected by the wind-down include deposits, investments, loans and cards.
This move is part of Citi's previously announced intent to exit its consumer franchises in 14 markets in Asia, Europe, Middle East and Africa, and Mexico, as well as its continued efforts to reduce its operations and exposure in Russia.
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