Putin permits Italy's UniCredit to reorganize UniCredit Bank, split Russian business

MOSCOW. Oct 5 (Interfax) - Russian President Vladimir Putin has permitted Italy's UniCredit Group to reorganize its Russian subsidiary bank and conduct transactions with its shares.

The order was published on the official legal information portal.

UniCredit said at the start of May that it planned to split its Russian business, and expected to sell part of it to a private investor from the United Arab Emirates (UAE). The transaction envisages the spin-off of part of the activities of the bank in Russia into a new separate entity (the 'New Bank') followed by the sale of that bank with its remaining activities (the 'Remaining Bank') to a buyer. Upon completion of the transaction, UniCredit will own 100% of the New Bank and the Buyer 100% of the Remaining Bank.

It is planned that the transaction will be closed in H1 2027. It will depend on the conclusion of a binding agreement, the separation of assets in Russia, and obtaining approval from relevant regulatory authorities.

A presidential decree prohibiting persons from unfriendly countries from conducting transactions with shares in Russian banks is making it difficult for foreign banks to exit Russia. However, the president reserves the right to authorize the sale of shares by special decision. To do so, an application must be submitted to the presidential administration, which, if deemed necessary, forwards it to the relevant agencies.

The order signed by the president on October 5 authorizes the reorganization of UniCredit Bank through the spin-off of a business entity with its shares being acquired by the sole shareholder, as well as transactions to acquire the 100% stake held by UniCredit. No other permits, decisions, consents, approvals, or authorizing documents prescribed by Russian law are required to fulfil these transactions.

The buyer is a well-established private investor in the UAE with long-standing ties to the local business community, and UniCredit has conducted compliance checks with regard to them in accordance with legal requirements, the group said in May.

UniCredit Bank Russia was the country's 23rd biggest bank by assets in the Interfax-100 ranking in Q2 2026.