In addition to demanding a decision from the EU’s General Court and a temporary suspension of the request, UniCredit announced on Monday that it was contesting the conditions set by the ECB for the Italian bank to reduce its exposure to Russia.
In recent weeks, the supervisors of the European Monetary Union (EU) and U.S. authorities have increased their pressure on banks in the eurozone that are still doing business with Russia, more than two years after Moscow invaded Ukraine, because of their connections to Russia.
The Italian group’s retail bank in Russia is subject to local laws and complex regulatory frameworks. As a result, UniCredit said that it was necessary to “seek clarity and certainty” regarding the necessary actions.
According to UniCredit, the application process could take several months, and the decision on its suspension request will come shortly. The company stated that this was necessary to prevent any “serious unintended consequences” from the ECB decision. Antonio Tajani, the foreign minister of Italy, acknowledged the grievance and stated that he, too, needed clarification.
“The circumstances under which Italian businesses conduct business in Russia under EU sanctions must be considered by the ECB. Hasty decisions only risk hurting EU and Italian businesses,” he stated.
The European Central Bank has requested European lenders to submit a “clear roadmap” for leaving the Russian market. Fabio Panetta, the governor of the Bank of Italy and an ECB policymaker, advised Italian banks “to get out” in May due to reputational concerns.
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