Citi, a U.S.-based bank, has seen its Russian business substantially diminish in the last few years, according to a Kommersant report published on September 29, 2017. Analysts are of the view that Citibank is getting ready to fold down its Russian operations altogether, especially if the tension in the U.S.-Russia relationship continues building up.

During the past couple of years, Citi cut the number of its branches in Russia by 50 percent to only 24 and significantly reduced the rate of issuing credit cards to Russian customers. Citibank also experienced a 40-percent reduction in its private client base.

Citi’s private banking department head Mikhael Berner earlier stated that the bank was reassessing its portfolio and closing accounts due to inactivity.

Berner said, however, that Citibank did not intend to sell its customer portfolio.

The circulating rumors about Citi’s intention to sell its customer portfolio are merely speculation, Berner said, adding that the bank is still introducing new products.

According to Kommersant, Citi’s loss of activity in Russia became noticeable in 2014, with the deterioration of the U.S.-Russia relationship following Crimea’s unification with Russia and the armed conflict in Eastern Ukraine. Citi’s decision to curtail its Russian operations are unprecedented. The bank did lower its activity in the country once before, in 2002.

Citi’s decision to limit its loan portfolio is part of the bank’s deliberate policy.

Bain & Company partner Egor Grigorenko noted that the bank will lose over 30 percent of its current loan portfolio if it does not issue any more loans. The consultant added that the bank’s decision aims at constraining operating expenses to mitigate risks in the retail market.

In Mr. Grigorenko’s view, Citibank’s strategy will allow it to exit the Russian market entirely in the event the bilateral U.S.-Russia relationship deteriorates.

Citi offers its clients an expanded range of online banking services, as 75 percent of its clients regularly use online access. The bank also provides to its customers the option of withdrawing funds through an ATM without a convenience fee.