Italy’s UniCredit has initiated measures to reduce its presence in Russia, with several top executives leaving and divesting a significant portion of its leasing assets, according to a report by Russian business daily Kommersant.
Kirill Zhukov-Emelyanov, who headed UniCredit’s Russian subsidiary for five years and worked at the bank for more than two decades, has left his position.
The bank’s head of corporate and investment banking, Vadim Aparakhov, and chief operating officer Olga Petrova also resigned, according to the report.
In addition, UniCredit has sold almost its entire long-term leasing portfolio from its subsidiary UniCredit Leasing to Russia-based PR-Leasing.
As part of the deal, contracts worth around Rs 3 billion ($39 million) were transferred, with the remaining portion expected to be settled soon.
Oleg Abelev, head of analysis at Rikom-Trust, told Kommersant: “The simultaneous departure of key top managers and the sale of a major asset is a clear sign that the bank is preparing for a complete withdrawal from the country.”
European regulators have urged UniCredit to reduce its Russian business to a level similar to that of Intesa, the other Italian bank still operating in the Russian market.
Andrea Orcel, CEO of UniCredit, previously stated that the bank has made several attempts to exit Russia since 2022, but has faced challenges due to sanctions.
Russian authorities are closely monitoring foreign banks for any actions that could lead to nationalization, a move that could result in a loss of capital for these banks, the Moscow Times reported.
UAE companies, including Asas Capital, Mada Capital and Inweasta, have expressed interest in acquiring UniCredit’s Russian subsidiary.
Last month, Russian President Vladimir Putin reportedly authorized the sale of Citibank’s remaining Russian operations to Renaissance Capital through a presidential decree.
Renaissance Capital is a national investment bank that is not subject to Western sanctions.
After Western companies left Russia in February 2022 due to the conflict between Russia and Ukraine, the Russian government imposed strict requirements on foreign companies seeking to leave the country.
This included significant reductions in asset valuations and mandatory contributions to the state budget, which have complicated the process for Western companies planning to leave the Russian market.
UniCredit withdrew from its deal to buy Banco BPM in July, as the Italian government had conditioned its approval on UniCredit meeting a number of requirements, such as ceasing its operations in Russia.
“UniCredit begins steps to exit Russia” was created and originally published by Retail Banker International, a brand owned by GlobalData.