All European banks that still operate in Russia receive letter from European Central Bank – UniCredit CEO

Andrea Orсel, CEO of Italian UniCredit Bank, has said that all banks that continue to operate in Russia have presumably received letters from the European Central Bank (ECB) calling for them to cut their business in Russia.

Source: Bloomberg

Details: UniCredit was one of the EU banks that received a letter from the ECB calling for a reduction in its business in Russia. Last month, Raiffeisen Bank International AG reported on the ECB's calls to reduce the Austrian bank's business in Russia.

"Every single bank in Europe that has any kind of exposure to Russia, has likely received the letter" from the ECB, said UniCredit Chief Executive Officer Andrea Orcel without commenting on UniCredit specifically.

UniCredit has so far avoided a full-scale exit from Russia. The bank said that its strategy is in line with regulators' expectations and that it is continuing to implement its plan to reduce Russian cross-border exposure to zero by the end of next year.

The Italian bank operates in Russia through its subsidiary JSC UniCredit Bank, which offers services to corporate and private clients. It employs around 3,100 people in 50 branches. Since the outbreak of the full-scale war, the Milan-based bank has set aside funds in case of a default in Russia.

Background:

• Johann Strobl, CEO of Raiffeisen Bank International (RBI), said that in the third quarter of 2024, the banking group would begin to comply with the European Central Bank's (ECB) order to significantly reduce its business in Russia.
• The largest Western banks that remain in Russia paid more than €800 million in taxes to the Kremlin last year, four times more than before the full-scale invasion, despite promises to minimise their Russian exposure.

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