Update. Surprisingly things went quite well - one lady from PenFed left a voicemail regarding my application. I called. She told me that my profile (US citizen, living overseas, travels frequently back to US and Europe, needs a credit card with PIN, does not work for government or defense contractor or even for an American company) was so unusual that it warranted a phone call.
She asked several questions based on my credit history and was quite satisfied. I was told that all good and my card will be on mail next week.
Now I need to call Citi...