Tom Sims

FRANKFURT, Reuters – Warren Buffett’s timing for recent investments in Citigroup Chief Executive Jane Fraser stated Tuesday that Inc (NYSE:) wasn’t known by U.S. lenders in advance.

Fraser said that it was not yet certain if the bank would continue to have its Russian bank licenses. This is despite the fact that Russia sent troops to Ukraine.

Earlier in this month, Buffett’s Berkshire Hathaway Inc (NYSE:) made a $3 billion new bet on Citi. This lifted its shares and boosted confidence in the Wall Street banker’s stock.

Fraser explained that they didn’t realise that the investor was actually buying, adding that the billionaire had studied carefully the strategies and presentations of the bank’s investor days.

Fraser stated that she had spoken to him but could not speak for him. She also said that Fraser was delighted by the “wonderful” move.

Citi set out its future strategy over the next three- to five years at its March investor day.

According to Refinitiv data, Berkshire has increased its stake in Citi by 2.8%. This makes it the fourth largest shareholder.

Fraser is leading a major overhaul of Citi. The shares of Citi had plunged by 38% over the past 12 months before Buffett’s investment was made public. Following regulatory orders, the company is also working on improving its compliance and risk systems.

It is working also to reduce its Russia presence, which is one of the most important U.S. banks.

It was unclear whether Citigroup will be able to hold Russian bank licenses at the end, she said. She stated, “The truth of the matter is that we don’t know.”

“We don’t yet know the exact end-state.” She said that if there’s a presence it would be extremely, very small.

Citigroup is currently selling the franchises of its commercial and consumer banking branches in the nation. Citigroup is focusing on closing the deal quickly and getting it signed, she stated.