Italian lender UniCredit has entered a non‑binding pact to sell part of its Russian operations to a private investor in the United Arab Emirates. The deal, slated to close in the first half of next year, will trim the bank’s profits by up to €3.3 bn.

This move follows a wave of exits by European banks after Russia’s 2022 invasion, yet UniCredit remains one of only two big lenders still active in Moscow. The sale will bolster its capital buffer, even as a cumulative hit of €3 bn‑€3.3 bn to net income is expected.

UniCredit plans to spin off its Russian payments arm into a new entity it will keep fully owned before divesting the remainder to the Emirati buyer. The transaction, though financially damaging, will preserve the bank’s dividend and share‑buyback commitments, sidestepping regulatory pressure from Western governments.

The bank’s continued Russian presence has already drawn political scrutiny in Italy, where a 2023 “golden power” review halted its bid for Banco BPM over concerns tied to Russian dealings. With the sale looming, UniCredit signals a definitive exit strategy, reaffirming CEO Andrea Orcel’s earlier statement that the firm cannot reverse course.