UniCredit Offices in Ukraine Searched

Ukrainian security services have searched the local offices of Italian bank UniCredit SpA as part of an investigation into the financing of Russia-backed separatists in the east of the country.

The bank said the General Directorate of Security Service of Ukraine, or SBU, seized documents related to its customers and partners in a search on Monday. It added that it was cooperating with the authorities and had provided all the information requested.

Olena Hiltyanska, a spokeswoman for the Ukrainian security services, said the government was investigating the possibility that transactions conducted at the bank had financed separatists.

She said the SBU believes there are "up to ten organizations" who used Unicredit accounts for financing terrorism. She couldn't specify the number of individuals involved.

Ms.Hiltyanska added that the security services didn't suspect Unicredit of any wrongdoing, only its clients. She declined to comment further citing the ongoing investigation.

Tamara Savoschenko, deputy chairman of UniCredit's Ukrainian unit, said the security services referred to a decision by the Pechersk District Court and that bank always provides information when required to do so by a court decision. "That's why there was no need of search," she added.

UniCredit put its Ukrainian unit up for sale in 2014. The unit is part of the bank's larger central and eastern European business and was the only unit of the bank not to report a profit last year.

In the area of Ukraine controlled by separatists, UniCredit closed 39 branches in 2013 and 2014. The bank's Ukrainian network has 287 branches and employs 6,100 people.

Write to Giovanni Legorano at [e-mail]

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