Matt Scuffham, David Henry

NEW YORK, (Reuters) – The sale Citigroup (NYSE:). The U.S. sanctions against VTB, Russia’s state bank, could cause problems for the Russian consumer bank, according to banking sources. VTB is the only confirmed bidder.

Citigroup has a small Russian business, however it causes Jane Fraser, Chief Executive at the bank, a problem. Jane Fraser is currently preparing for an investor meeting next week. This could be a crucial step in the bank’s future.

Citigroup offered the sale of the business last April in a wider exit strategy from its international retail businesses. The company stated it expected that the process would take around 18 months. Dmitry Pyanov (VTB board member) stated that the bank had made a bid last September, and added that the other parties were also interested.

Citigroup refused to comment. VTB didn’t respond to our requests for comment.

Washington has imposed additional sanctions following the invasion of Ukraine by Russian forces on Thursday. The US targeted Ukraine’s two largest banks, VTB and VTB.

VTB’s ability to buy the company is in doubt, as per the bank sources. Citigroup may be interested in other buyers.

You can request an exemption or write-off of the company’s value if it is not.

Dick Bove of Odeon Capital predicts that Citigroup will face difficulties finding buyers.

He stated, “Nobody requires it.”

Citigroup’s Russian assets were worth $5.5 Billion at September 2021 according to regulatory filings. This is 0.3% of the company’s total assets. This includes $700 millions in consumer loans.

Although still small, Citigroup has the most exposure to Russia of all major U.S. lenders and is the 19th biggest bank in Russia by assets, according to research published by JPMorgan Chase & Co (NYSE:) last month.

Bove stated that “Citigroup could suffer a negative impact.”

Citigroup refused to reply to Bove’s remarks.

Citigroup shares fell 4% on Thursday after falling as high as 7% earlier.