Russian President Vladimir Putin has issued a decree allowing Italian banking group UniCredit to reorganize its Russian operations and sell its shares.

Russian President Vladimir Putin has signed an official decree authorizing the Italian financial group UniCredit to restructure its Russian subsidiary, UniCredit Bank, and sell its shares. The order, published on October 5, removes the requirement for further government approvals to complete the sale. This move follows a preliminary agreement previously announced by UniCredit to sell most of its Russian business to a private investor from the United Arab Emirates while retaining its payments arm.

Regulatory Context and Asset Sale

Since 2022, Russia has required presidential approval for the sale of assets held by banks from countries labeled as 'unfriendly,' a list that includes Italy. UniCredit, one of the few remaining European banks operating in Russia, is classified as a systemically important credit institution. The bank aims to finalize the reorganization and sale by the first half of 2027. While UniCredit has not publicly identified the UAE-based investor, reports from Kommersant have suggested that the consortium involved may be acting on behalf of Alfa Group.

Pressure on Western Firms in Russia

Western companies operating in Russia face ongoing risks of asset seizure or confiscation as Moscow exerts pressure on Western governments. Recent actions include the seizure of control over the Russian subsidiary of Germany’s Metro AG and decrees targeting the assets of Swiss company Nestle and French retailer Auchan. European capitals have simultaneously pressured banks like UniCredit and Austria’s Raiffeisen Bank to exit the Russian market following the 2022 invasion of Ukraine.