Putin Approves Reorganization of UniCredit Bank Russia

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Russian President Vladimir Putin authorized the corporate reorganization of AO UniCredit Bank, the Russian subsidiary of Italian banking group UniCredit, through a decree published by the state news agency Tass. The transaction splits the subsidiary into two entities: UniCredit will retain full ownership of a new corporate structure, while an unnamed buyer will take over the remaining operations. The regulatory approval removes the requirement for additional permits under Russian law for the specified transactions.

Presidential Decree Enables AO UniCredit Bank Corporate Spinoff

The presidential decree establishes a two-step framework for AO UniCredit Bank. According to coverage from the sources, the legal mechanism relies on Russia’s presidential decree no. 520 of August 5, 2022. That framework regulates corporate and financial transactions involving assets held by entities from countries deemed hostile by Moscow in response to international sanctions.

Under the approved terms, AO UniCredit Bank will undergo a corporate spinoff. Once the transaction reaches completion, UniCredit will hold 100 percent of the equity in the newly created entity, frequently referred to in financial reports as the New Bank. Meanwhile, the undisclosed purchaser will acquire 100 percent of the remaining entity, designated as the Remaining Bank.

UniCredit Signs Term Sheet to Sell Russian Subsidiary Portions

The presidential green light follows a preliminary step taken earlier. As detailed in the sources, UniCredit announced in May that it had signed a non-binding term sheet to sell portions of its Russian subsidiary to a consolidated private investor based in the United Arab Emirates. Under that arrangement, the Italian banking group intended to preserve only its international payments business inside the Russian market.

When the preliminary agreement was made public, the bank indicated that it expected to finalize the transaction during the first half of 2027, subject to regulatory clearances. While the sources highlight the non-binding nature of the initial May accord, the newly issued decree provides the specific domestic legal authorization required by Russian authorities to execute the split without pursuing further local regulatory approvals.

Remaining Questions on Buyer Identity and Final Closing

Significant details regarding the transaction remain unconfirmed in public disclosures. While financial reports acknowledge the involvement of a private investor from the United Arab Emirates, official documentation published via Tass does not disclose the specific identity of the buyer acquiring the Remaining Bank.