Vladimir Putin approves the reorganization and sale of UniCredit’s Russian subsidiary

Russian President Vladimir Putin has approved the reorganization of the Italian UniCredit group’s Russian subsidiary and the subsequent sale of the resulting new entity, according to a decree published Monday on the Moscow government’s website. The transaction requires Kremlin approval because it involves assets owned by an investor from a country considered “unfriendly” by Russia.

The decision represents an official step in the process through which UniCredit is reducing its presence in the Russian market. At the beginning of May, the Italian group announced a non-binding agreement to sell part of its Russian operations to a private investor from the United Arab Emirates, whose name was not disclosed.

Under UniCredit’s announced plan, the Russian operations will be split in two. The buyer will take over most of the activities, while UniCredit will retain full ownership of its payments division in Russia. The group estimated that the transaction would be completed in the first half of 2027, after obtaining all necessary approvals.

UniCredit was one of the main Western banks to continue operating in Russia after the invasion of Ukraine, alongside Raiffeisen and OTP, despite pressure from European authorities to withdraw from the market.