Raiffeisen Bank International is discussing the sale of a stake in Belarusian Priorbank – Kommersant

The Austrian banking group Raiffeisen Bank International (RBI) is negotiating the sale of its 87.74% stake in the Belarusian Priorbank and its subsidiaries with the UAE investor Soven 1 Holding Limited. The RBI noted that the completion of the transaction will lead to the company’s potential exit from the Belarusian market.

From messageson the website of the Belarusian bank it follows that the transaction for the sale of a stake in Priorbank may entail losses for the RBI group in the amount of about €225 million. This is due to the difference between the sale price and the book value of Priorbank’s equity.

RBI’s consolidated profit from the stake sale could be reduced by around €450 million due to reclassification of losses. The reclassification is not expected to have any impact on the regulatory capital of the RBI group.

Founded in 1989, Priorbank is one of the largest Belarusian banks in terms of assets. The Raiffeisen Bank International group acquired a controlling stake in Priorbank in 2003. Early May 2023 RBI reported on reducing its network of correspondent accounts with CIS countries. In the same month the group notified on termination of correspondent relations with all Belarusian credit institutions.

Read more about RBI’s business in Russia in material “Ъ”.

Milena Kostereva