Putin signs decree allowing sale of 100% of UniCredit Bank's Russian shares
In short
Russian President Vladimir Putin signed a decree permitting transactions involving 100% of the shares of AO UniCredit Bank, which belong to Italy's UniCredit S.p.A., according to RIA Novosti, RBC and Kommersant. Kommersant reported the decree also allows the bank's reorganization and removes the need for additional presidential approval, while permission from the Central Bank of Russia is still required. UniCredit announced in May a non-binding preliminary agreement to sell part of its Russian assets to an investor from the UAE.
Read the full story 1 min read
Russian President Vladimir Putin signed a decree permitting transactions involving 100% of the shares of AO UniCredit Bank, which are owned by Italy's UniCredit S.p.A., according to RIA Novosti, RBC and Kommersant. Kommersant reported that the document was published on the official website of legal acts. [ 1 , 2 , 3 ]
Kommersant reported that the decree allows the reorganization of UniCredit Bank and transactions to purchase 100% of its shares, and that no additional presidential approval for the sale of the Russian assets is required. The newspaper noted that UniCredit Bank is on the list of credit institutions whose share and stake transactions require special permission from the Russian president. Despite the decree, a sale of Russian assets by a Western company still requires permission from the Central Bank of Russia, Kommersant reported. [ 3 ]
In May, UniCredit announced the signing of a non-binding preliminary agreement to sell part of its Russian assets to an investor from the United Arab Emirates, Kommersant reported. The Kremlin said it would consider the sale of the group's Russian assets “when a corresponding request is received”, according to the newspaper. Kommersant reported that the sale is not designed as a transfer of the entire bank to one buyer: UniCredit Bank is to be divided into two legal entities, one of which will remain under UniCredit's control and the other sold to the investor. Such a structure could allow the seller to reduce the discount and make it easier to obtain the funds, the newspaper reported. [ 3 ]
Under UniCredit's control, the business of cross-border transfers in dollars and euros for corporate clients not under sanctions is to remain, Kommersant reported. [ 3 ]
Why it matters
The decree clears a presidential-level hurdle for the sale of UniCredit's Russian banking assets, a step in the exit of a Western lender from the Russian market. Kommersant reported the planned split of the bank into two legal entities could let the seller reduce its discount and make it easier to obtain the proceeds. Approval from the Central Bank of Russia is still required, so the outcome is not yet settled.
Key facts
- Putin signed a decree permitting transactions with 100% of the shares of AO UniCredit Bank, owned by UniCredit S.p.A. [ 1 , 2 , 3 ]
- Kommersant reported the decree allows the reorganization of UniCredit Bank and transactions to purchase 100% of its shares. [ 1 , 3 ]
- No additional presidential approval is required for the sale of the Russian assets, according to the document cited by Kommersant. [ 3 ]
- UniCredit Bank is on the list of credit institutions whose share and stake transactions require special permission from the Russian president. [ 3 ]
- In May, UniCredit announced a non-binding preliminary agreement to sell part of its Russian assets to an investor from the UAE. [ 3 ]
- The bank is to be divided into two legal entities: one stays under UniCredit's control, the other is to be sold to the investor. [ 3 ]
- Permission from the Central Bank of Russia is still required for the sale of the assets. [ 3 ]
- Cross-border transfers in dollars and euros for corporate clients not under sanctions are to remain under UniCredit's control. [ 3 ]
Confirmed by several sources
Still unclear
- Whether the sale has been completed or on what terms The documents describe the signing of the decree and earlier planning, but state no completion, buyer confirmation or price.
- Whether the UAE investor named in the May preliminary agreement is still the buyer Kommersant reported only the May non-binding preliminary agreement; no document says the deal with that investor has been signed or is final.
- When the May preliminary agreement was signed and whether it remains in force Kommersant said only that UniCredit announced the agreement ‘in May’, without a year or an update on its status.
- The timing of the decree's signing The documents give publication times but not the time the decree was signed.
What local media are saying
Timeline, local time
- RIA Novosti reports that Putin allowed transactions with UniCredit Bank shares. [ 1 ]
- RBC reports that Putin allowed transactions on the sale of 100% of AO UniCredit Bank, owned by UniCredit S.p.A. [ 2 ]
- Kommersant reports that Putin signed a decree allowing the sale of UniCredit's Russian assets. [ 3 ]