Italy’s UniCredit tightens restrictions in Russia, suspends euro transfers

The bank’s customer support service clarified that the restrictions are due to a correspondent bank decision. However, UniCredit Bank will continue to accept incoming transfers.

Since September, Raiffeisenbank — the largest Western bank still active in Russia — also suspended foreign currency withdrawals for its clients. Before the war and Western sanctions, Raiffeisenbank processed nearly half of all international payments in the Russian economy. Both UniCredit and Raiffeisenbank received orders from the European Central Bank (ECB) in mid-2024 to drastically reduce their Russian operations. The ECB mandated that they cut money transfers for Russian clients by two-thirds and reduce lending to Russian companies by the same amount.

UniCredit entered the Russian market in 2005, acquiring a stake in Moscow International Bank during an oil-driven economic boom. By 2007, it was renamed UniCredit Bank and, by the end of 2021, ranked among Russia’s top 20 banks by assets. The Russian Central Bank even classified it as a systemically important financial institution.

Following Russia’s full-scale invasion of Ukraine, UniCredit announced plans to scale down its Russian business. This strategy was reaffirmed by the Italian group’s CEO, Andrea Orcel, in February.

However, in 2023, the Russian subsidiary generated €890 million ($940 million) for UniCredit — almost 8% of its total pre-tax profit. Compared to pre-war levels, the bank’s Russian profits more than quadrupled (€210 million ($222 million) in 2021). Despite cutting Russian corporate lending in half and reducing its workforce in Russia by 8%, the bank's revenue grew by 17% over the year, driven by higher service fees.

Earlier reports indicated that UniCredit was interested in acquiring a stake in Germany’s Commerzbank if merger talks between Commerzbank and Deutsche Bank fell through.

On Sept. 23, 2024, Commerzbank AG warned the German government that a potential acquisition by UniCredit could lead to a reduction in lending to small and medium-sized businesses, which form the backbone of Germany’s economy.