Italian banking group UniCredit is conducting an urgent review of its business in Russia and could shutter its operations there, joining other western firms in withdrawing from Russian market, media reports said. 

Speaking at a conference organised by Morgan Stanley UniCredit CEO Andrea Orcel said: “No conclusions can be drawn overnight, but we will report soon with more detail.

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“Obviously we need to seriously consider the impact and the consequences and the complexity of disentangling a full bank from the country.”

Last month, Russia invaded Ukraine from land, sea and air, which led the US and its NATO allies to impose severe financial sanctions on Moscow. 

The sanctions have impacted global markets and left European firms scrambling for cover.

The Italian lender along with France’s Societe Generale and Austrian banking group Raiffeisen Bank International is among those with significant Russian exposure.

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Last week, the lender revealed that in an event of a complete write-off of its Russian operations it may take a hit of up to €7.4bn ($8.1bn).

At the end of 2021, UniCredit had €7.8bn in loans to customers through UniCredit Bank Russia. Despite the threat of complete business write-off, the bank had confirmed its plans to go ahead with its proposed 2021 cash dividend of €1.2bn.

Orcel stated: “My number one job is to ensure the overall stability of our bank and our ability to serve our communities across Europe. Unwinding a bank that employs over 4,000 people and services more than 1500 corporate clients, 1,250 of which are European corporates, as well as absorb a shock that could reach up to €7.5bn, cannot and should not be done without careful consideration.”