Russia has imposed sanctions on the current accounts of Italian companies and individuals that bank with the local units of UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI), two people with knowledge of the matter said.
Backing the press reports, the people said the Bank of Russia had told the local units of Italy’s top two lenders that as of May 25, Italian companies and residents along with Italian consulates, could not withdraw funds from their accounts without a green light from the local bank heads.
Deposits that raise an account’s balance over 100,000 euros ($107,150) are also prohibited, in a measure similar to one imposed by the European Union on Russian nationals, the sources said.
Furthermore, Italian citizens and companies who do not have a Russian residency permit would not be authorized to open new accounts, they added. The Italian embassy and its general consulates in Russia bank with Intesa, Italy’s largest lender.
The Italian general consulate in Moscow said on its website that it was saddened by the problems Russian citizens encountered due to the difficulties Banca Intesa was experiencing in executing transactions related to consular duties.
In that context, the Italian embassy separately cited on Instagram the restrictions placed by the Bank of Russia which hindered the payments for consular duties. Following the Russia-Ukraine war, Intesa has said that it is organizing a strategic review of its presence in Russia, where it attends to corporate clients with a staff of about 980.
UniCredit manages Russia’s 14th largest bank and has been seeking an exit. It has not obtained a deal so far, with people close to the process saying the exit is made difficult by the bank’s determination not to shatter value in a sale.
CEO Andrea Orcel has said that intensifying international sanctions have left only a “very small window” to exit. He added that it could only take place if the bank figured out how not to abandon its 1,250 European corporate clients and 4,000 Russian staff in the lurch.
($1 = 0.9333 euros)
