Sayonara, Moscow. The bleeding of capital from Russia, now close to default (tomorrow the Federation should pay 117 billion coupons in rubles, a currency that today is worth little more than waste paper) does not stop. Banks, industries, finance, are leaving the country in a phase of financial dissolution and perhaps also driven by the fear of retaliation, aka forced nationalization of the assets of those who decide to give up their moorings. UNICREDIT GREETS RUSSIA
Among the Italian giants, the heaviest announcement came from Unicredit, which just two months ago was one step away from buying the Russian bank Otktritie, only to reverse. And today by Andrea Orcel, CEO of Piazza Gae Aulenti, words with a farewell flavor have arrived. Unicredit could leave the Russian market, and the synthesis of Orcel, which emerged during a meeting with the market. “The economic climate has changed with the crisis and Unicredit now expects a period of stagflation,” explained the banker. Orcel added that the decision is complex and could take time. “We are considering an exit, but obviously we have to balance the complexity and consequences of our activities in the country.”
However, we must be careful about the exposure of the Italian institution in the former USSR. In recent days, Unicredit has quantified the maximum loss it would suffer by eliminating its activities in Russia, including cross-border and derivatives, at 7.4 billion. Thanks to the excess capital buffer, this is an absorbable impact compatible with the payment of 1.2 billion in dividends on 2021. And Unicredit Bank Russia, explained a note released last week, has a self-financed credit position of 7.8 billion at the end of 2021. “There are 4 thousand people and I consider them as colleagues and excellent colleagues and 1,250 European companies have maintained their positions in the markets in which we are present and expect us to accompany them on the path of disengagement”, he clarified Orcel.
Remaining in the Italian field, Intesa SanPaolo in recent days has also ventilated a reverse from Moscow. “Our presence in Russia is subject to strategic evaluation”, explained a spokesperson for the group led by Carlo Messina , which operates with 28 branches and over 900 employees. TIME OF GOODBYE
But the list of greetings is long. Goldman Sachs is the first US bank to leave Russia. The New York giant announced a few days ago its intention to close its operations in the country in response to the invasion of Ukraine. “Goldman Sachs is closing its business in Russia,” the company said in an e-mailed statement. “We focus on supporting our customers around the world in managing or extinguishing pre-existing obligations in the market and ensuring the safety of our people.”
And after a turnaround, Deutsche Bank’s farewell also arrived. The German giant “will close its remaining operations in Russia while we help our non-Russian multinational clients reduce their operations. There will be no new business in Russia ”. And to think that the statement came just a day after CEO Christian Sewing said the Frankfurt-based bank would not completely withdraw from the Putin-led country. But someone must have made him change his mind.
