AIG Says 'Nyet' to Russia

(Update: Revises stock price to reflect the market close.)

Continuing the process of divesting itself from all four corners of the globe, American International Group(AIG Quote) is saying "nyet" to Russia.

The insurer said it will sell 98% of its shares in its consumer-finance operations in Russia to Banque PSA Finance SA, a subsidiary of PSA Peugeot Citroën Group.

Banque PSA Finance also holds an option, not exercisable until March 2011, to buy the remaining 2%. Terms of the deal were not disclosed.

The Russian unit, OOO AIG Bank, was created last June and has a dozen employees.

This is yet another move by AIG to sell off assets to repay the massive $180 billion government bailout. Last week the company said it plans to spin off two life-insurance businesses as part of a plan to repay $25 billion of debt.

Other pieces up for grabs include: Stowe Mountain Resort and International Lease Finance.

Shares in the company closed Monday trading down almost 9%, to finish at $1.33.