UniCredit Accelerates Russia Exit Strategy Through Planned Partial Sale of AO Bank Operations

UniCredit Accelerates Russia Exit Strategy Through Planned Partial Sale of AO Bank Operations

(IN BRIEF) UniCredit has signed a non-binding agreement to divest part of its Russian subsidiary operations through a transaction involving a UAE-based private investor. The proposed deal would split AO Bank into two entities, with UniCredit retaining ownership of a newly created bank focused mainly on international payment services for non-sanctioned corporate clients, while the remaining operations would be sold to the investor. UniCredit said the restructuring is designed to reduce its exposure in Russia while ensuring continuity for customers and employees. The transaction is expected to close in the first half of 2027 subject to regulatory approvals and final agreements. The bank stated that the deal will not affect shareholder distributions or its long-term profitability targets under its UniCredit Unlimited 2028–2030 strategy.

(PRESS RELEASE) MILAN, 7-May-2026 — /EuropaWire/ — UniCredit has signed a non-binding agreement outlining plans to divest part of its operations in Russia as the banking group continues to reduce its exposure in the country and refocus activities primarily on international payment services for non-sanctioned corporate clients.

The transaction involves the partial sale of UniCredit’s Russian subsidiary, AO Bank, to a private investor based in the United Arab Emirates with longstanding connections to local institutional and business communities. UniCredit stated that the buyer has undergone the required compliance checks as part of the proposed transaction process.

Under the planned structure, part of AO Bank’s activities will first be separated into a newly created entity referred to as the “New Bank.” Following this spin-off, the remaining operations of AO Bank, described as the “Remaining Bank,” will be sold to the UAE-based investor. Once the deal is completed, UniCredit will retain full ownership of the New Bank while the buyer will acquire full ownership of the Remaining Bank.

According to the bank, the restructuring is intended to accelerate UniCredit’s strategic repositioning in Russia by concentrating its remaining operations mainly on international payment services in euros and US dollars for Western companies and Russian corporate clients that are not subject to sanctions.

The company emphasized that the transition process has been designed to maintain operational stability and continuity for both customers and employees throughout the restructuring period. Clients currently using UniCredit’s payment services connected to Russia are expected to continue accessing the same services during the implementation phase.

UniCredit also stated that employees within AO Bank are expected to benefit from a clearer organisational structure following the creation of two separate banking entities with distinct business strategies and objectives.

Financially, the transaction is expected to generate an overall capital benefit of approximately 35 basis points. The bank indicated that while the closing of the transaction is expected to create an initial negative impact of approximately 20 to 25 basis points, this would be more than offset by a significant reduction in residual extreme loss exposure, which is expected to decline to approximately 30 to 40 basis points from around 93 basis points as of the first quarter of 2026.

The deal is also expected to produce a cumulative negative profit-and-loss impact estimated between €3.0 billion and €3.3 billion. This includes a non-cash accounting impact of approximately €1.6 billion to €1.8 billion related to existing foreign exchange reserves flowing through the profit-and-loss statement.

UniCredit said the transaction is currently expected to close during the first half of 2027, subject to the completion of binding agreements, implementation of the planned spin-off structure and approvals from relevant regulatory authorities.

The bank added that the proposed deal will not affect shareholder distribution plans, as the financial impact will be excluded from the definition of net profit used for distribution purposes. UniCredit also stated that the transaction is not expected to alter the group’s long-term profitability ambitions under its “UniCredit Unlimited 2028–2030” strategy framework.

The announcement represents another step in the ongoing restructuring efforts by European financial institutions seeking to reduce operational exposure in Russia amid continuing geopolitical tensions, sanctions regimes and evolving regulatory pressures affecting international banking operations.

Media Contact:

Media Relations e-mail: MediaRelations@unicredit.eu
Investor Relations  e-mail: InvestorRelations@unicredit.eu

SOURCE: UniCredit