MOSCOW, January 12 The Citigroup banking group reported that a total of $4.7 billion remains as “stuck” dividends from clients of its subsidiary in the Russian Federation, follows from the company’s presentation following the results of the year.
«About $4.7 billion, or 72% of Citi's $6.5 billion risk of potential losses (exposure) (in the Russian Federation — ed.), are non-refundable corporate dividends in Russia received and held on behalf of custodial clients (users of depositary funds). bank services — ed.) in the Russian division of Citi,» the statement says.
Excluding dividends, the group's exposure fell 82% by the fourth quarter of 2021, the group said. The presentation also notes that the total risk associated with the Russian subsidiary at the end of the year amounted to $6.5 billion — this is 13% lower compared to the previous year and 34% lower by the fourth quarter of 2021.
The group previously said it had created provisions of $1.3 billion «related to increased risks of funds transfer restrictions» in Argentina and Russia.
Citigroup back in April 2021 announced its decision to withdraw from the retail banking markets of 13 countries, including Russia, as part of a strategy update. After the introduction of Western sanctions against Russia, Citibank announced in mid-March 2022 that it would not attract new clients to the Russian Federation and would expand the process of exiting Russian business, extending it not only to retail.