Italian bank Intesa Sanpaolo has received permission from Russian President Vladimir Putin to sell or transfer its assets in Russia, according to a document published on Friday on the Russian government’s website, Reuters and news.ro reported.
In August, Reuters exclusively reported that Italy’s biggest bank was close to getting permission to transfer its Russian business to the local government, as Moscow’s stance on divestment changed.
Intesa declined to comment.
Earlier this year, supervisors from the European Central Bank (ECB) stepped up pressure on banks to reduce their exposure to Russia.
The Italian bank entered the Russian market half a century ago, opening a representative office, which it decided to close at the beginning of August.
Its local bank, which serves only corporate customers, had 861 employees and 27 branches as of June 30.
The decree, dated Sept. 28, cited another decree signed in August 2022 by Putin that authorized him to issue special exemptions for certain transactions involving energy and financial assets.
The latest decree says that Moscow allows transactions that will lead to the direct or indirect sale of 100% of Intesa’s shares.
The bank stopped new financing for Russian clients and new investments in Russian assets when the conflict erupted. However, the bank has cross-border contacts with the country through loans provided by its domestic business to Russian clients. At the end of June, it amounted to 700 million euros ($741.51 million), excluding reserves and guarantees for export credits.
Russia has steadily stepped up demands for an exit since Western companies began leaving shortly after Moscow began what it calls a “special military operation” in Ukraine in February 2022.
Intesa has been trying to sever ties with its Russian businesses since last year, but Western sanctions on potential buyers have made it difficult for European banks, including rival UniCredit and Austria’s Raiffeisen Bank, to leave.
Approval of Intesa’s exit could pave the way for similar approvals for other foreign banks still based in Russia.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.