UniCredit and Citigroup are reportedly trying to avoid bulky write-downs related to quitting Russia over Ukraine
In an attempt to escape hefty write-downs on operations in Russia due to their exit from the sanction-hit country, UniCredit and Citigroup are exploring the possibility of swapping assets with Russian banks, FT reports, citing people with knowledge of the matter.
The plan comes amid a mass exodus of foreign lenders from Russia due to Western sanctions imposed on the nation over its military operation in Ukraine. According to estimates revealed last week, European banks took a hit of nearly $10 billion writing down assets and setting aside cash to protect themselves against the expected economic ramifications of anti-Russia sanctions.
UniCredit is discussing the sale of its Russian business to several financial institutions that haven’t been sanctioned by the West, people briefed on the talks told the media.