UniCredit S.p.A ("UniCredit" or "UCI") informs that it has made an application to the General Court of European Union ("GCEU") to obtain definitive legal clarification of the obligations set by the European Central Bank's ("ECB") requirements to further reduce the risks associated with UniCredit's activities in Russia, carried out by subsidiaries including UniCredit Bank Russia ("AO Bank").
Since Russia's invasion of Ukraine in February 2022, UniCredit has adopted a series of strategies to reduce its Russian presence resulting in a reduction of its cross-border exposure by 91% and its domestic exposure by 65% to date with further substantial reductions to be implanted based on the commitments with UniCredit's action plan.
These facts prove that UniCredit is fully aligned with ECB on the importance of reducing its presence in Russia, while it has concerns about the terms upon which this reduction has to take place as provided for in the decision issued by ECB, that goes beyond the current legal framework. In this respect, UniCredit has been in constructive discussion with the ECB. However, the unprecedented circumstances, the complexities inherent in the geo-political and economic scenario and the lack of a harmonized regulatory framework applicable to it and the potential for serious unintended consequences of implementing the decision that would impact not only the Russian subsidiaries but UniCredit S.p.A., compel the Board of Directors of UniCredit to seek for clarity and certainty of the duties and of the actions to be undertaken. To this purpose, it has filed the application to the General Court of European Union to get clarity about the obligations that UniCredit shall abide by. This application has been made in the full knowledge of the ECB.
The application may take several months to conclude but is the appropriate next step to ensure legal certainty both for UniCredit and the ECB. While this application is being heard, UniCredit has requested an interim suspension of the Decision pending the proceeding. A ruling on that suspension can be expected in the coming months.
In the interim UniCredit will continue to act on its commitment to significantly reduce its presence in Russia, whilst respecting fully the legal, regulatory and sanction framework. UniCredit remains committed to maintaining an active and open engagement with the ECB on the matter.
Milan, 1 July 2024
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