Three UAE-based firms have submitted a proposal to the Italian Treasury to acquire UniCredit’s operations in Russia at a significant discount, according to a document reviewed by Reuters.
UniCredit faces pressure from both the European Central Bank and the Italian government to exit the Russian market, where it operates a commercial bank. The company has resisted exiting at a loss and is instead pursuing a phased withdrawal, aiming to conclude its Russian retail operations by mid-2026.
The plan involves Dubai’s investment firms Asas Capital and Mada Capital creating a special purpose vehicle, in collaboration with Inweasta, an advisory and investment company already active in Russia, as detailed in the document.
Both Asas Capital and Mada Capital are relatively small and lesser-known entities. Mada Capital manages approximately $639 million in assets and focuses primarily on regional markets.
Asas Capital, established in Dubai in 2009, emphasizes capital markets, private equity, advisory services, and entrepreneurship.
The deal will also involve unnamed Italian partners, responsible for obtaining necessary approvals from the ECB, Italy, and relevant regulators in the European Union and the United States.
According to the document, “All participants in the transaction are not subject to sanctions and comply fully with the current sanctions framework.”
It further stated, “The funds for the transaction originate from the UAE.”
The proposal was initially reported by the Italian newspaper Il Messaggero. Asas, Mada, and Inweasta have yet to respond to requests for comments, while UniCredit has declined to provide any statements.
Inweasta specializes in, among other areas, resolving cross-border disputes. Last year, it acquired the Russian operations of Czech firm PPF, securing approvals from the central bank and the Foreign Investment Subcommittee.
“Inweasta assists in obtaining all necessary regulatory permissions and documentation for transactions in Russia,” the document noted.
A presidential directive and approval from the Bank of Russia are essential for Western companies looking to divest Russian assets.
The proposed bid from the UAE consortium offers to buy UniCredit’s Russian division at a 60% discount relative to its market value, as indicated in the document.
While UniCredit has been progressively downsizing its Russian presence, it has also contested the tighter exit deadlines imposed by the European Central Bank through legal channels.
The Italian government has urged UniCredit to exit from Russia by early 2026 as a condition for approving its acquisition bid for smaller domestic competitor Banco BPM.