[ad_1]
UniCredit is still awaiting a court decision regarding a European Central bank order to reduce its business in Russia after filing an objection several months ago. The delay adds pressure on the bank to demonstrate compliance with the ECB’s directives, which have already passed their deadlines. In April, the ECB instructed UniCredit to scale down its operations in Russia, including imposing restrictions on new deposits and payment processing. UniCredit challenged the orders in June, citing potential violations of Russian laws. The bank also requested a suspension of the measures while the court case is ongoing, with a decision expected in the coming months.
UniCredit aims to significantly decrease its presence in Russia by 2025 despite the legal battle with the ECB. The bank is contesting the restrictions on loans, deposits, and payments imposed by the ECB, including bans on new loans and term deposits. The court case also challenges limits on payments with Russian clients in specific foreign currencies, with exceptions for “whitelisted” clients. UniCredit plans to reduce cross-border payments and local deposits in Russia over the next few years.
The legal dispute with the ECB comes as UniCredit seeks approval to increase its stake in Commerzbank in Germany. The ECB evaluates such acquisitions based on financial strength, reputation, and potential risks, including money laundering concerns. UniCredit’s ties to Russia trace back to International Moscow Bank, now known as AO UniCredit Bank, which has been a key player in the Russian banking sector.
Despite political tensions following Russia’s invasion of Ukraine, UniCredit, along with Raiffeisen, continues to operate in Russia. The bank’s commitment to scaling down its Russian business reflects efforts to align with regulatory requirements and strategic goals.
[ad_2]
SOURCE
Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.