Citigroup's board has greenlit the divestment of its Russian business unit, marking another wave of Western financial institutions stepping back from Russian exposure. The catch? The bank is taking a hefty $1.2 billion writedown on the exit.

This move signals deeper shifts in how traditional finance is recalibrating geopolitical risk. When giants like Citigroup are forced to absorb billion-dollar losses to unwind positions, it reflects the real costs of financial fragmentation and sanctions pressure.

For crypto traders watching macro trends, this is a textbook example of how traditional finance deals with blacklisted regions—or doesn't. While traditional banks are stuck liquidating at massive losses, decentralized platforms operate without borders. Whether that's good or bad depends on your stance, but it's worth noting how differently the two systems respond to the same geopolitical reality.