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Russian President Vladimir Putin has approved UniCredit Group’s plan to reorganize its Russian banking business and carry out transactions that could lead to the sale of part of the Italian lender’s operations to a private investor from the United Arab Emirates.
The order, signed Oct. 5 and published on Russia’s official legal information portal, allows UniCredit Bank Russia to be split into separate entities and permits the transfer of UniCredit’s 100% stake in the remaining business.
UniCredit announced in May that it planned to separate part of its Russian operations into a new entity, known as the "New Bank," while the remaining activities would stay in another entity, the "Remaining Bank."
Under the proposed structure, UniCredit would retain 100% ownership of the New Bank, while a buyer would take full ownership of the Remaining Bank. The transaction is planned for the first half of 2027, subject to a binding agreement, the separation of Russian assets and regulatory approvals.
Putin’s latest order specifically authorizes the restructuring and the acquisition of shares by UniCredit’s sole shareholder, along with transactions involving the 100% stake held by UniCredit. The decree also states that no additional permits, approvals or consents required under Russian law will be needed to complete those transactions.
The move gives UniCredit an exemption from restrictions that have made it difficult for banks from countries Moscow considers "unfriendly" to sell Russian assets. Foreign shareholders generally face restrictions on transactions involving shares in Russian banks, although the Russian president can approve individual sales.
UniCredit described the prospective buyer in May as an established private investor in the UAE with long-standing connections to the local business community. The Italian group also indicated that it had carried out the required compliance checks.
Earlier reports had pointed to a consortium of three UAE-based companies as a potential buyer. The group was reported to include Dubai-based investment firms Asas Capital and Mada Capital, which would establish a special-purpose vehicle alongside Russia-based investment company Inweasta.
The structure disclosed during the approval process, however, did not provide details about the Abu Dhabi-based entity. Market reports describe the proposed sale as involving a 60% discount, although a final transaction value was not provided.
Earlier, UniCredit was also involved in the sale of Yapi Kredi’s Russian subsidiary, Yapi Kredi Moscow, acting as financial adviser to the Turkish lender in its $57.1 million sale to Russia’s Expobank in 2017. UniCredit later exited Turkiye in 2021, transferring its stake in Yapi Kredi to Koc Holding.
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