Italian banking group UniCredit has reached an agreement to sell portions of its Russian business operations to an investor from the United Arab Emirates, the bank announced.

The Milan-based lender did not disclose the identity of the buyer or provide financial details of the transaction. UniCredit stated that the divestiture is part of a strategic refocusing of its Russian operations.

Following the sale, UniCredit said its remaining activities in Russia will be concentrated primarily on facilitating international payment services. The bank has been operating in the Russian market but faces ongoing challenges related to international sanctions and geopolitical tensions.

The transaction represents part of a broader trend among Western financial institutions reassessing their exposure to Russian markets. Many international banks have been reducing their Russian operations or exiting the market entirely since geopolitical tensions escalated.

UniCredit has not provided a timeline for when the sale is expected to be completed. The deal remains subject to regulatory approvals and customary closing conditions.