Raiffeisen expects to spin off Russian business by the end of the year
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Austrian banking group Raiffeisen Bank International (RBI) expects to allocate Russian assets by the end of December. Johann Strobl, CEO of the group, announced this on a conference call.
“On our last call, we listed September 30 as the earliest date for the spin-off, and as of today, this seems unlikely,” leads his words “Interfax”.
Strobl noted that the group is considering the end of December as the new date for the spin-off. According to him, the option of selling the Russian business is also being studied – RBI has made more progress in this matter than in the option of spinning off the business. Potential buyers are showing interest in the Russian bank, but its sale will still lead to significant losses, Strobl said.
In May, Strobl said that the separation of business into a separate structure could occur in the third quarter. Strobl stated that in the event of a sale, Russian assets would not be given away at any price, “there is a level.”
At the end of March, the European Central Bank (ECB) demanded that the banking group leave the Russian market. At the same time, RBI decided to sell the Russian business or withdraw it from the group’s perimeter. A post on the bank’s website said it was consulting “with the relevant competent authorities” on possible deals.
In early July, Reuters, citing sources informedthat the group has not yet provided the ECB with a plan to withdraw from Russia, making completion of this procedure by September unlikely. The interlocutors also noted that the RBI is in no hurry to leave in hope for an early end to the conflict in Ukraine. Austrian officials, in turn, step up the group’s defenses.
In the company’s report for the first half of the year, given Estimated Excess Profit Tax Expenses in Russia. It is specified that if Raiffeisenbank pays the tax during the grace period, the costs will amount to 50 million euros. If the standard rate of 10% is applied, the company’s expenses will increase to 100 million euros.
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