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[BUSINESS] · Germany, Italy, Russia · 3 sources

UniCredit's Commerzbank bid risks inheriting Russian legal disputes

UniCredit's pursuit of Commerzbank may force the Italian lender to inherit complex legal and financial liabilities in Russia. Commerzbank maintains two Russian entities, Commerzbank Eurasija and Dom na Naberezhnoy 2, which would pass to UniCredit if the takeover is successful.

In the spring of 2024, a St. Petersburg court froze Commerzbank's Russian assets and shares following a sentence of nearly 100 million euros. This exposure contrasts with UniCredit's recent efforts to exit the Russian market, including an agreement in May to sell part of its Russian assets to a private investor from the United Arab Emirates. To manage ongoing legal difficulties and Kremlin-imposed conditions, UniCredit has provisioned 554 million euros for the 2025 fiscal year.

The acquisition faces significant regulatory hurdles in Russia. The indirect change of ownership for the two subsidiaries must be reviewed by the Central Bank of Russia and the national competition authority, and ultimately requires approval from President Vladimir Putin.

Entities

Central Bank of Russia · Commerzbank · Moscow · UniCredit · Vladimir Putin

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