Putin allowed UniCredit to sell its Russian assets

Russian President Vladimir Putin signed a decree allowing the Italian group UniCredit to reorganize its Russian subsidiary bank and subsequently sell those assets. The document provides for the reorganization of the financial institution by spinning off a separate business entity with the ability to conduct transactions involving 100 percent of its shares.

The UniCredit Group is under constant pressure from the European Central Bank, which is demanding that it significantly accelerate the process of winding down its operations in Russia. The bank had previously stopped accepting new corporate clients in Russia and began preparing to spin off its business to minimize its presence in the Russian market.

Source: Reuters.

On September 17, Russian dictator Vladimir Putin signed a decree transferring the Russian assets of a number of Western companies to temporary state control. The list includes 100% of Auchan LLC, two Russian subsidiaries of Nestlé—“Nestlé Russia” and “Nestlé Kuban”—as well as Le Monlid LLC, which owns the “Lemana Pro” chain (formerly Leroy Merlin). 

Russia may continue to place the assets of European companies that have remained active in its market under state control. Russian officials and business representatives, speaking on condition of anonymity, told Reuters this, and one high-ranking official stated bluntly: “Let them be afraid.” In recent weeks, the Russian assets of Nestlé, Metro, and Auchan have already been placed under temporary administration.