UniCredit has signed a non-binding term sheet covering the disposal of part of its Russian subsidiary, AO Bank.
The proposed buyer is described as a “well-established private investor” based in the United Arab Emirates (UAE) with links to the local institutional and business community.
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Both parties will work on the final transaction structure, related arrangements and market communication at a later stage.
UniCredit said the agreement speeds up its shift in Russia towards a narrower business model centred mainly on international payments in euros and US dollars for Western and Russian non-sanctioned corporate clients.
The process has been designed to preserve stability and continuity for clients and staff, the statement said.
Customers using UniCredit’s payment services to and from Russia will continue to have access to the current range of operations during the transition.
The bank said employees of AO Bank will be part of an accelerated transition that will result in two banks with distinct strategies and objectives.
Under the planned structure, part of AO Bank’s activities would be separated into a new entity.
AO Bank, holding the remaining activities, would then be sold to the buyer.
After completion, UniCredit would own 100% of the new bank, while the buyer would hold 100% of the remaining bank.
The lender also said the deal is expected to produce a cumulative negative profit and loss effect of about €3bn to €3.3bn.
The figure includes, among other items, a negative €1.6bn to €1.8bn from the existing FX reserve passing through profit and loss, which it said is a non-cash item with no capital impact.
Completion is expected in the first half of 2027, subject to binding documentation being signed, the spin-off being implemented and clearance from the relevant regulators.
The deal will not change shareholder distributions because the effect will be excluded from the net profit definition used for distribution purposes.
The agreement applies to all remaining business activities in Russia and affects about 800 employees.
In December 2025, UniCredit began taking steps to shrink its Russian presence, with several senior executives departing and a substantial share of its leasing assets being reduced, according to Russian business daily Kommersant.
Earlier this year, Citi completed the sale of its former Russian subsidiary, AO Citibank, to Renaissance Capital, ending its presence in Russia.
