(Bloomberg) -- UniCredit SpA will not proceed any further in its exploration of a purchase of Russian lender Otkritie Bank FC, with Chief Executive Officer Andrea Orcel citing geopolitical tensions in the region. 

UniCredit is withdrawing from its due diligence into the rescued Russian lender after exploring a possible acquisition, Orcel said in a media call on Friday, presenting the bank’s full-year earnings.

UniCredit had shown interest in Otkritie as part of the bank’s plans to explore M&A opportunities to improve profitability, Bloomberg reported earlier this month. At the same time, the emerging prospect of a war between Russia and Ukraine has thrown the business environment into turmoil.

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Otkritie is a systemically-important Russian bank that was nationalized in 2017 as part of the country’s biggest-ever bailout after it collapsed under a pile of bad debt, much of it linked to its former owners. Bank of Russia, which is reviewing options to dispose of its stake, said that several strategic investors have showed interest in participating in the sale process and an IPO remains one option for the central bank to exit Otkritie.

UniCredit has pledged to consider mergers and acquisitions provided they add shareholder value. A deal would help Orcel -- a veteran deal-maker -- move past the complicated and ultimately unsuccessful negotiations with the Italian government to take over struggling local lender Banca Monte dei Paschi di Siena SpA last year. 

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