Putin authorises UniCredit to reorganise and split its Russian business
In short
President Vladimir Putin has authorised Italy’s UniCredit to reorganise its Russian subsidiary, AO UniCredit Bank, by spinning off a separate entity whose shares go to the bank’s sole shareholder, and to carry out transactions to acquire the shares held by UniCredit S.p.A. The order follows a May non-binding agreement to sell part of the Russian business to a private investor from the United Arab Emirates, dividing it into two banks, with UniCredit keeping the new one. Interfax reported the deal was planned to close in the first half of 2027, subject to a binding agreement, asset separation and regulatory approvals.
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President Vladimir Putin has authorised Italy’s UniCredit to reorganise its Russian business, according to an order published on Russia’s official portal for the publication of legal acts. Vedomosti and Interfax reported that the order permits the reorganisation of AO UniCredit Bank in the form of a spin-off of a separate economic entity, whose shares are to be received by the bank’s sole shareholder. It also authorises transactions to acquire the 100% of UniCredit Bank shares held by UniCredit S.p.A. Interfax reported that no other permits, decisions, consents or approvals under Russian law are required for those transactions. [ 2 , 3 ]
In May, UniCredit signed a non-binding preliminary agreement to sell part of its Russian subsidiary (AO Bank) to a private investor from the United Arab Emirates, Vedomosti reported. Interfax said the group announced in early May that it planned to divide the Russian business and sell part of it to the Emirati investor. Under the plan the Russian business is split into two structures: after the process is completed, the new bank remains owned by UniCredit, while the remaining part of the business goes to the investor. Interfax described it as UniCredit holding 100% of the “new bank” and the buyer holding 100% of the “remaining bank”. [ 2 , 3 ]
Interfax reported that the transaction was planned to close in the first half of 2027, and that its implementation depends on the conclusion of a binding agreement, the separation of assets in Russia and approval from the relevant regulators. The agency also reported that UniCredit described the buyer as a well-established private investor in the UAE with long-standing ties to local business circles, whom the group had checked for compliance with legal requirements. [ 3 ]
Interfax noted that exits by foreign banks from the Russian market are complicated by a presidential decree that bans persons from unfriendly countries from carrying out transactions with shares of Russian banks, while the president retains the right to authorise a sale by a special decision. Under that procedure, an application must be filed with the presidential administration, which may then forward it to the relevant agencies. [ 3 ]
Why it matters
The order removes a regulatory obstacle for a foreign bank trying to leave Russia, where a presidential decree bars investors from unfriendly countries from transacting in shares of Russian banks unless the president grants a special permission. It is an authorisation rather than a completed exit: the documents say the sale still depends on a binding agreement, asset separation and approvals, and the buyer has not been named. Other foreign lenders reducing their Russian presence face the same approval route.
Key facts
- President Vladimir Putin signed an order allowing Italy’s UniCredit to reorganise AO UniCredit Bank and to carry out transactions with its shares [ 1 , 2 , 3 ]
- The order was published on Russia’s official portal for the publication of legal acts [ 2 , 3 ]
- The reorganisation is a spin-off of a separate economic entity, whose shares are to be received by the bank’s sole shareholder [ 2 , 3 ]
- The order also authorises transactions to acquire 100% of UniCredit Bank shares held by UniCredit S.p.A. [ 2 , 3 ]
- In May, UniCredit signed a non-binding preliminary agreement to sell part of its Russian subsidiary to a private investor from the United Arab Emirates [ 2 , 3 ]
- Under the plan, UniCredit keeps the new bank and the buyer receives the remaining business [ 2 , 3 ]
- Interfax reported the deal was planned to close in the first half of 2027, conditional on a binding agreement, asset separation and regulatory approvals [ 3 ]
Confirmed by several sources
- President Vladimir Putin signed an order permitting UniCredit to reorganise AO UniCredit Bank and to conduct transactions with its shares [ 1 , 2 , 3 ]
- The order was published on the official portal for the publication of legal acts [ 2 , 3 ]
- After the transaction, the new bank is to remain with UniCredit while the remaining part of the business goes to the buyer [ 2 , 3 ]
Still unclear
- The identity of the buyer of the remaining business Vedomosti and Interfax describe the buyer only as a private investor from the United Arab Emirates; no name is given in the documents.
- The financial terms and value of the transaction None of the documents state a price or other financial terms.
- Whether the May preliminary agreement has become binding Vedomosti and Interfax describe it as a non-binding preliminary agreement; Interfax says implementation depends on a binding agreement being concluded.
- Whether the transaction will be completed Interfax says completion depends on a binding agreement, the separation of assets in Russia and approvals from the relevant regulators.
What local media are saying
Timeline, local time
- TASS reports that Putin has allowed the reorganisation of UniCredit Bank [ 1 ]
- Vedomosti publishes details of the order, including the spin-off form and the authorisation to buy UniCredit Bank shares from UniCredit S.p.A. [ 2 ]
- Interfax reports the order and the structure of the planned split of the Russian business [ 3 ]
- UniCredit signs a non-binding preliminary agreement to sell part of its Russian subsidiary to a private investor from the United Arab Emirates [ 2 , 3 ]