Austria’s Raiffeisen Bank International (RBI) has decided to sell its Russian assets or create a spin-off of its Russian branch to decouple it from the RBI group, CEO Johann Strobl told an annual general meeting, Reuters reports.
“RBI will pursue possible transactions that can lead to a sale or a spin-off of Raiffeisenbank Russia and its deconsolidation from the RBI group,” Strobl said.
The bank’s press office issued a similar statement which reads that the lender will continue some of its banking operations in Russia to maintain its licence but will gradually reduce its business activity in the country. In particular, the organisation seeks to decrease “loans to customers and reduce the overall volume of foreign currency transactions”.
“The market conditions for businesses in Russia are highly complex. The local and international laws and regulations governing the sale of businesses in Russia are subject to constant change,” the statement says.
“A senior Raiffeisen executive said the bank was in talks with two potential buyers, including one from Russia, but any spin off would take four to seven months,” Reuters notes.
On 24 March, Reuters broke the news that the European Central Bank (ECB) was putting pressure on the Austrian lender to quit Russia, citing its sources.
In February, the US Treasury’s OFAC launched a probe into Raiffeisen Bank as the bank continues operations in Russia, Ukraine’s partially occupied regions, and Syria. In particular, the watchdog requested data on transactions and operations of several clients, a source then told Reuters.
Raiffeisen Bank is Austria’s second-largest lender and supports a large part of the national economy. The bank is also actively involved in business operations in Eastern Europe.
Reuters notes that the bank “is now the most important Western bank in Russia, offering a lifeline to people and businesses there seeking to make international payments”.
