The European Central Bank (ECB) is prepared to impose sanctions on Italy’s UniCredit due to the bank’s ongoing business engagements with Russia.
The ECB’s demands align with its strategy to limit business activities with Russia in response to the invasion of Ukraine. The central bank has also urged Austria’s Raiffeisen Bank International (RBI) to reduce its lending and payment operations in Russia.
According to a report by Reuters, after extensive discussions, the ECB is ready to enforce penalties and fines on UniCredit if the bank does not comply with a forthcoming legally-binding order.
As the conflict in Ukraine continues, regulators are intensifying actions against violations of sanctions, yet they face challenges in curbing the operations of major lenders like RBI and UniCredit in Russia.