Citi might remain in Russia on smaller scale - media

MOSCOW. June 1 (Interfax) - Citigroup, which has been planning to leave Russia, has allowed for the possibility of retaining its presence in Russia, only on a smaller scale, FT and Reuters reported, citing Citigroup CEO Jane Fraser.

Citi, which announced last year that it was planning to leave commercial banking in Russia, said after the start of the military operation in Ukraine that it would wind up other areas of its Russian business, as well. It has stopped taking on new clients in the country.

"We don't know yet, we haven't made a decision on exactly what size we will be," Fraser said in response to whether Citi will try to keep its license. If it has a presence, the bank "will just be materially smaller [in Russia] than it has been," she said.

The bank is in the process of selling its commercial business in Russia. Citigroup plans to close the deal as quickly as possible, Fraser said.

Fraser hopes that the peace talks with Russia "will take hold," but there is no certainty in what their result will be at the moment. Citigroup could lose around $3 billion if its Russian businesses experience serious difficulties.

Citigroup said earlier that it had reduced its exposure to Russia to $7.8 billion from $9.8 billion in the first quarter and created reserves of $1.9 billion to counter its Russia exposure and the impact of the conflict in Ukraine.