Raiffeisen delays withdrawal from Russia in hope of ending conflict in Ukraine – Kommersant

Raiffeisen Bank International (RBI) delays exit from Russia, sources say Reuters. It is alleged that in Austria they hope for a speedy end to the Russian-Ukrainian conflict. Reuters previously also citing anonymous sources informed about RBI’s plans to transfer its Russian division – Raiffeisenbank – to shareholders.

According to the agency, RBI planned to spin off its Russian business by September after it faced pressure from European regulators. “Austria and the RBI … are resisting this in the hope that the war in Ukraine will end soon,” sources told Reuters.

Austrian officials are said to be strengthening the bank’s defenses in Europe and the US. While publicly backing Kiev, Vienna doesn’t want to completely sever decades of ties with Russia. Austria believes in the possibility of rebuilding relations. According to the agency, the issue of keeping or abandoning the Russian business caused controversy in the bank’s management.

The RBI has yet to submit a plan for Russian business to the European Central Bank, “making a spinoff by September unlikely.” The bank wants to wait for regulator approval before giving shareholders the green light. This may take several months. In addition, RBI will also need approval from the Russian Central Bank, the Finance Ministry and, in the event of a sale, Russian President Vladimir Putin. According to Reuters, the Russian authorities have made it clear to RBI that they want it to stay, as it allows international payments.

A spokesman for the bank told Reuters that the company will continue to look into the sale of the Russian subsidiary or branch and intends to reduce its Russian business.

ECB previously urged European banks operating in the Russian Federation to adopt clear roadmaps for exiting Russian business, as well as regularly report on the actions taken. According to a joint assessment by Bloomberg and JPMorgan, in the first quarter of 2023, EU banks had capital of €45 billion at risk in Russia. The largest share in this amount belongs to the Austrian Raiffeisen Bank International. Austrian Foreign Minister Alexander Schallenberg defended RBI in the spring and noted that 91% of Western companies continue to work in Russia.

Leonid Uvarchev