Vladimir Putin approves reorganization and partial sale of UniCredit Russian subsidiary

Presidential decree and sale approval

Russian President Vladimir Putin signed a decree on Monday, 5 October 2026, authorizing the corporate reorganization of AO UniCredit Bank and the subsequent sale of the newly created entity. The official document was published on the Russian government website. The decree formally removes the requirement for additional permits, consents, or approvals under Russian legislation for the specified capital transactions. The approval was required under Presidential Decree No. 520 of 5 August 2022, which imposed special economic restrictions on deals involving assets owned by investors from countries designated by Moscow as unfriendly. Milan-based UniCredit, Italy's second-biggest bank, has maintained operations in Russia since the February 2022 invasion of Ukraine while facing consistent regulatory demands from European authorities to withdraw.

Structure of the division and UAE investor

The transaction follows a non-binding agreement reached in May 2026 between UniCredit and an unnamed private investor based in the United Arab Emirates. Under the approved restructuring plan, UniCredit will split its Russian operations into two distinct legal entities. The Italian group will retain 100% ownership of the carved-out payments business, designated as New Bank, which will continue processing international payments for non-sanctioned corporate clients. The UAE investor will acquire full control of the remaining banking unit, referred to as Remaining Bank, which holds the retail and corporate lending portfolios. UniCredit has not disclosed the purchase price, but the lender previously projected an earnings burden between 3.0 billion euros and 3.3 billion euros associated with the divestment. The bank expects to close the deal in the first half of 2027.

Regulatory path and European banking exits

The pathway to reducing UniCredit's Russian presence has developed across several corporate and legal milestones over four years.

The restructuring mirrors earlier attempts by European lenders to manage exits under Russian regulatory constraints. Intesa Sanpaolo secured a similar presidential decree in September 2023 for its corporate banking business, though it has not severed ties completely. European authorities, including the European Central Bank, have continued pressing eurozone lenders to wind down balance sheet exposures in Russia.

Sanctions framework and market presence

UniCredit has long ranked among the largest Western commercial banks operating in Russia, alongside Austria's Raiffeisen Bank International and Hungary's OTP Bank. Foreign companies seeking to divest Russian assets face heavy administrative barriers, including mandatory asset discounts and fiscal contributions to the Russian state budget. In July 2026, the European Union granted a narrow sanctions exemption that allowed UniCredit to complete a delayed transaction involving its former Ukrainian division and Russian businessmen Mikhail Fridman and Petr Aven. Fridman and Russian billionaire Alisher Usmanov were later removed from the EU sanctions list. The central bank of Russia and Western sanctions authorities retain oversight of remaining divestment steps as UniCredit prepares to execute the transfer.