Raiffeisen Bank will sell or withdraw the Russian division from the group

Austrian Raiffeisen Bank International (RBI) plans to sell the bank’s Russian division or withdraw it from the group structure. The company’s business activity in Russia will be reduced. This is stated in the message of the Austrian credit organization.

The statement emphasizes that Raiffeisen Bank International “is in an unprecedented situation and recognizes the urgent need for action caused by Russia’s war against Ukraine.”

According to Reuters, at the end of last week, the European Central Bank demanded that the Austrian group start the process of exiting the Russian business. Raiffeisen Bank International (RBI) then confirmed that it was studying options for “carefully managed exit” from the Russian market.

In January, the US Office of Foreign Assets Control (monitors compliance with American sanctions) requested details of the bank’s payment business, as well as transactions of certain Russian clients.

At the same time, according to RBI Director General Johann Strobl, Raiffeisen Bank cannot immediately close its operations in Russia and will retain some banking operations in accordance with the terms of its license. “Market conditions for business in Russia are very complex. Local and international laws and regulations governing business sales in Russia are subject to constant changes,” the Austrian bank noted.

Strobl also reported that the RBI had received a proposal for a possible exchange of assets with Sber’s European “daughter” – Sberbank Europe.

Under the conditions of international sanctions in response to the Russian invasion of Ukraine, the bank’s branch in Russia remained one of the last, still connected to the SWIFT system, and became a de facto monopolist on the Russian market.

According to the British newspaper Financial Times, up to half of all Russian payments to other countries go through it. Thus, the Russian division of Raiffeisenbank provides most of the income of the entire transnational group. Of the 3.6 billion euros in profit for 2022, 2.2 billion came from Russia and Belarus. Moreover, the last figure increased four times in just an hour.

In March, the National Agency for the Prevention of Corruption (NAPK) of Ukraine included Raiffeisen Bank International in the list of international “war sponsors”.