The European Central Bank (ECB) is ready to order the Italian bank UniCredit to radically reduce its business with Russia.
Two sources told Reuters about this.
The requirements for the second largest European bank in Russia will be similar to the requirements of the ECB for the Austrian Raiffeisen Bank International, the largest Western bank operating in the country.
Raiffeisen Bank International stated the day before that the ECB wants the bank to reduce its lending and payments in Russia within the established terms.
After months of discussions, the ECB intends to issue a legally binding order to UniCredit. This is the penultimate step before the ECB can impose sanctions such as fines.
The ECBʼs official warning to UniCredit will give the bank the last chance to prevent the foreclosure procedure from the supervisory authority.
- In mid-January, The Financial Times wrote that more than 40 Western banks cannot leave the Russian market on acceptable terms due to the decree of Russian President Putin. It stipulates that any agreements on the sale or purchase of banks require the approval of the authorities.
- At the same time, the Austrian banking group Raiffeisen Bank International announced that it will deal with the possible sale or separation of its Russian business. There, they undertook to reduce activity in Russia.
- In May, EUobserver wrote that the European Union plans to help European companies leave the Russian market so that they do not finance a full-scale Russian war against Ukraine with their taxes.