UniCredit gets Putin’s approval to sell part of its Russian business
The Italian bank plans to keep its international payments business while selling its other Russian operations. The approval contrasts with Moscow’s recent moves to place several Western companies’ local assets under temporary management.
Russian President Vladimir Putin recently approved UniCredit's plan to sell a portion of its Russian business, allowing the Italian bank to reduce its presence in the country. UniCredit Bank has been operating in Russia since 1989 and has continued its operations despite the ongoing conflict with Ukraine. In May, UniCredit announced its intention to sell part of its Russian subsidiary to a private UAE investor with strong ties to the local business community.
The decree enabling the reorganization permits UniCredit to sell 100% of its shares in the Russian bank, while retaining a portion of the business focused on payment services. The Italian group estimates a negative impact of €3–3.3 billion on its financial results. The deal would not have been possible without Putin's personal approval, as any share transactions with "unfriendly" countries required special permission under a 2022 decree.
Since 2022, UniCredit and Raiffeisenbank have been on a list of systemically important credit institutions, facing pressure from the European Central Bank to reduce their Russian operations. Other major Italian banks, such as Intesa Sanpaolo and OTP Bank, also continue to operate in Russia on a limited basis but require Kremlin approval for their exits.
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