Even more than two years after the start of Russia’s war of aggression against Ukraine, Raiffeisen Bank International (RBI) has not yet managed to withdraw from its activities in Russia. This seems to be a thorn in the side of the European Central Bank; the bank will therefore have to prepare for further discussions soon.
The Austrian bank expects a request from the ECB in the near future to scale down its activities in Russia more quickly, the RBI announced in an ad hoc announcement on Thursday. However, according to the RBI, the bank has been pursuing this goal since February 2022 at its Russian subsidiary AO Raiffeisenbank.
RBI does not want to waive outstanding money
The RBI is aware of the contents of the ECB’s letter, a spokesperson for the bank explained the ad hoc announcement: According to it, customer lending should fall significantly in 2026 – by as much as 65 percent compared to the end of the third quarter of 2023. And the RBI should reduce international payments from Russia accordingly. This last condition can be met relatively easily. However, it becomes more difficult when it comes to the loan size if you do not want to miss the outstanding money.
“The ECB’s proposed requirements go well beyond RBI’s own plans to further reduce its business activities in Russia and could negatively impact RBI’s put options with respect to AO Raiffeisenbank,” the RBI further said.
RBI: Possible reprimand “comes as a surprise”
“The ECB’s pressure does not improve the RBI’s strategic situation,” Florian Beckermann, board member of the Association for Investors (IVA), said in a press release on Thursday afternoon. “The relationship between the RBI and the ECB is known to be conflict-free, but such a possible reprimand comes as a surprise. “
According to its own statements, the bank has already taken extensive measures to minimize the risks at the Russian subsidiary bank. And she is determined to achieve the deconsolidation of AO Raiffeisenbank, for example by selling the unit. However, this would also require approval from the Russian side, a spokesperson said.
Bank wants to acquire Deripaska’s share in Strabag
“On the other hand, you have to ask yourself whether the proposed deal between Strabag and Deripaska has not sensitized the ECB,” said Beckmann. The bank announced in December that it would acquire 28.5 million shares in construction group Strabag through its Russian subsidiary and pass it on to the RBI as dividend in kind. To avoid sanctions, the shares are said to have been traded through a Russian investor.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
