Putin signs decree allowing UniCredit to restructure and sell its Russian unit

On Oct. 5, President Vladimir Putin signed an official decree that authorises the Italian banking group UniCredit to reorganise its Russian subsidiary and sell the restructured entity. UniCredit had announced in May that it would sell the majority of UniCredit Bank Russia to a private investor from the United Arab Emirates, retaining only its payments division. The Kremlin's approval removes a key obstacle, allowing the bank to aim for completion of the deal by the first half of 2027.

The move comes as UniCredit and other Western banks, such as Austria's Raiffeisen Bank, face mounting pressure from European governments to withdraw from Russia following the 2022 invasion and ensuing sanctions. Moscow has also recently seized assets of other Western firms, including Nestle, Auchan, and Metro AG's Russian subsidiary, highlighting the risks for foreign companies operating in the country.