UniCredit out of Russia: agreement to divest part of Ao Bank

UniCredit signed a non-binding agreement to sell part of its business in Russia. The buyer, reads a note, is a well-established private investor based in the United Arab Emirates, "with long-standing relationships with the local institutional and business community", in relation to which Unicredit has carried out the required compliance checks.

The agreement on the sale of part of the business in Russia 'accelerates the process of refocusing UniCredit's activities' in the country mainly on international payments, mainly in euros and US dollars, for Western and Russian corporate clients not subject to sanctions.

The transaction, reads a note from the credit institution, was structured and will be executed in such a way as to ensure 'continuity and stability for customers and employees'. Customers using UniCredit's payment solutions to and from Russia will retain access to the current range of transactions throughout the process.

The planned structure envisages the spin-off of part of AO Bank's assets into a new separate entity, called New Bank. Subsequently, AO Bank, with the remaining assets, will be sold to the buyer and become Remaining Bank. Upon completion, UniCredit will hold 100 per cent. of New Bank, while the purchaser will hold 100 per cent. of Remaining Bank.

From a capital perspective, UniCredit expects the transaction to generate a total capital benefit of about 35 basis points. The group explains that the initial negative impact at closing, estimated at around 20-25 basis points, will be more than offset by the reduction of the residual loss in the extreme scenario, which is expected to be around 30-40 basis points compared to the 93 basis points calculated as of Q1 2026.