Italy sets demand for UniCredit to leave Russia amid Banco BPM acquisition talks

Italy is expected to request that UniCredit (CRDI.MI) exit Russia as soon as possible, as part of the conditions set to approve the bank's proposed acquisition of the smaller rival Banco BPM (BAMI.MI).

UniCredit is one of the few international banks that has yet to pull out of Russia following the Ukraine war, Caliber.Az reports per foreign media.

CEO Andrea Orcel previously stated that he was hesitant to exit without securing a fair price for the assets, fearing harm to shareholders. The bank, which has already faced pressure from the European Central Bank (ECB) to expedite its withdrawal from Russia, did not immediately respond to a comment request. Italy is also expected to ask UniCredit to keep a stable rate between loans and deposits, and maintain current project finance operations, the paper said.

The Italian government is reviewing the deal under so-called "golden power" regulations, allowing it to block or set conditions on foreign and domestic corporate takeovers in strategic sectors such as energy, telecommunications and banking. It could deliberate on the deal as early as this week, as a cabinet meeting is scheduled for April 18. 

The government was leaning towards a conditional green light for the Unicredit-Banco BPM transaction, with a decision expected by the end of April. UniCredit said this month it would launch its 14 billion-euro ($15.93 billion) all-share bid for BPM on April 28, after receiving approval from market watchdog Consob. However, the lender reserves the right to wait until June 30 to decide whether continue with the terms of the offer.

By Naila Huseynova