According to this year’s findings, analysts anticipate that 25 to 30 banks could withdraw from the Russian financial system due to ongoing international sanctions. This assessment is reported by Izvestia, which cites data from analysts at the ACRA rating agency. The core drivers behind the possible pullback of foreign banks include the unwinding of regulatory relief measures and persistent headwinds in Russia’s economy.
The article notes that as many as 25–30 banks might exit the Russian market within the year, with the majority of the retreat expected to stem from voluntary exits by foreign players. It adds that a significant portion of anticipated changes will involve licenses being voluntarily relinquished by a mix of Russian and foreign banks, with additional reviews likely involving entities controlled by residents.
Compared with the previous year, the projections indicate that more financial institutions could leave Russia in 2023 than in 2022. Lyudmila Kozhekina, who heads the banking ratings division at Expert RA, pointed out that the prior year saw a reduction of foreign credit institutions in the Russian Federation by 12 entities.
On March 27, Izvestia reported unnamed sources suggesting that the management of the American financial group Citigroup may face obstacles in divesting Citibank Russia due to IT system issues tied to software from Cisco and Oracle, which halted distribution within Russia. The reports highlighted that the presence of IT assets abroad introduces additional challenges for the financial holding.