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Italian banking major Intesa Sanpaolo has revealed that is reviewing its Russian exposure as Western countries sever ties with Russia to protest Ukraine’s invasion, Reuters reported.

Intesa Sanpaolo is said to handle over half of all the commercial transactions between Italy and Russia.

Its Russian credit exposure is 1.1% of its total, which was €5.57bn ($6.16 billion) at the end of 2021.

Intesa Sanpaolo’s Russian and Ukrainian subsidiaries have €1bn and €300m in assets respectively, which amounts to just 0.1% of its total assets.

The lender is also helping its staff in Ukraine by providing them accommodation in other countries where it operates, the bank’s spokesperson said.

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In Europe, Intesa Sanpaolo has operations in Slovenia, Hungary, Slovakia, and the Czech Republic as well.

The news comes as French lender SocieteGenerale has warned it could lose assets worth $20bn from its Russian business.

Italy’s other key lender, UniCredit, also has a significant credit exposure to Russia, which stands at around €14bn.

A full write-off of UniCredit’s Russian operations would cost it around €1bn, which would result in a drop of 35 basis points off its capital ratio, the news agency said citing sources.

Since the launch of invasion last week, UniCredit’s shares have dropped over 20%. The lender has put a hold on its plans to buy Banco BPM, for this reason, the sources close the matter said.

In February, the lender came close to launching an offer but was forced to put it on hold after Russia’s invasion of Ukraine rattled the global markets.