By Elsie Kamsiyochi
UniCredit’s efforts to reduce its exposure to Russia have taken an unexpected turn after it emerged that Riccardo Orcel, the brother of Chief Executive Andrea Orcel and a former senior executive at Russian banking giant VTB, played a key role in helping broker the Italian lender’s planned exit from the country.
The previously undisclosed involvement of Riccardo Orcel sheds new light on the complex negotiations behind UniCredit’s attempt to sell parts of its Russian business, a process that has been closely watched by regulators, investors, and governments since Russia’s invasion of Ukraine triggered sweeping Western sanctions and a mass corporate exodus from the country.
UniCredit confirmed that Riccardo Orcel introduced a proposal concerning the bank’s Russian operations and was appointed as an independent adviser by the lender’s board to assist with the transaction process. The bank said the agreement announced earlier this year was the successful outcome of that work.
The revelation highlights the challenges faced by Western financial institutions seeking to leave Russia. Since the outbreak of the Ukraine conflict, Moscow has tightened rules governing foreign companies wishing to sell assets, making exits increasingly difficult and often requiring significant discounts. Any transaction involving a major foreign bank typically requires approval from both Russia’s central bank and President Vladimir Putin through a presidential decree.
Riccardo Orcel is well known in Russian banking circles. During his career, he served as deputy chief executive of VTB Group, Russia’s second-largest lender, and also held senior positions at investment banking subsidiary VTB Capital. Before leaving Russia in 2022, he was considered one of the most recognizable Western banking executives operating in the country.
His deep understanding of the Russian financial system and extensive network of contacts may have proved valuable as UniCredit sought a pathway out of a market that had become increasingly difficult for Western institutions to navigate. After departing VTB following the invasion of Ukraine, Riccardo Orcel went on to hold positions with international commodity and mining companies.
The arrangement is likely to attract attention because of the family relationship between Riccardo Orcel and UniCredit CEO Andrea Orcel. Under Italian banking regulations, transactions involving close relatives of senior executives are subject to strict oversight and scrutiny to ensure that any potential conflicts of interest are properly managed.
Financial governance experts note that such appointments must undergo extensive review by internal committees, board members, auditors, and regulators. These safeguards are designed to ensure that decisions are made in the best interests of shareholders and stakeholders while maintaining transparency and independence throughout the process.
UniCredit has been under increasing pressure from European regulators to reduce its Russian footprint. Despite scaling back operations since 2022, the bank remained one of the largest Western lenders still operating in Russia, making its exit strategy particularly significant.
In May, UniCredit announced that it had reached a non-binding agreement to sell parts of its Russian banking business to a private investor based in the United Arab Emirates. The bank said it would retain only certain payments-related activities in Russia following completion of the transaction.
Few details have been released about the prospective buyer. However, the UAE has emerged as an increasingly important hub for business and financial activity involving Russia, particularly after sanctions disrupted traditional commercial centers across Europe.
The sale, if completed, would mark another major step in the withdrawal of Western financial institutions from Russia. Since 2022, foreign companies across sectors ranging from banking and energy to retail and manufacturing have faced mounting obstacles when attempting to exit the Russian market.
For UniCredit, the deal represents an opportunity to satisfy regulatory demands, reduce geopolitical risk, and simplify its international operations. Yet the disclosure of Riccardo Orcel’s advisory role underscores how difficult and unconventional some of these exit negotiations have become, particularly in a market where political considerations, sanctions, and regulatory approvals all play critical roles.
As the transaction moves through the necessary approval processes, investors and regulators will continue to monitor the deal closely, both for its implications on UniCredit’s future strategy and for what it reveals about the increasingly complex landscape facing Western businesses seeking to disengage from Russia.
Source Reuters
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