News

22 Apr, 2025

Raiffeisen Bank denies FT report on halting sale of its Russian subsidiary

Business NewsForeign Business

Austria’s Raiffeisen Bank International (RBI) has not halted the process of selling its Russian subsidiary, Raiffeisenbank. This was reported by RBC on 18 April, citing the bank’s press service. “The sale process is ongoing”, the RBI statement reads.

Earlier, the British newspaper Financial Times reported, citing unnamed sources, that RBI had stopped attempts to sell Raiffeisenbank amid improving relations between the US and Russia. According to two FT sources, the Austrian group made this decision in February when Moscow and Washington began renewing dialogue. “This is being done to assess the situation and see if the US position might change”, one source told the paper.

Another FT source said that serious efforts to sell the shares had currently ceased, though the situation within the company could change again.

At the same time, FT’s own article included a statement from RBI confirming that the sale process is ongoing, but that a Russian court case has halted the execution of any transaction. “At present, RBI’s shares in Raiffeisenbank in Russia are blocked, so a deal is currently impossible”, the statement clarifies.

RBI first announced plans to scale down its business in Russia in spring 2022 but only began taking concrete steps under increasing pressure from US and EU regulators. In particular, last spring the US threatened the group with restricted access to its financial system.

In September last year, the Kaliningrad Region Arbitrazh Court froze the shares of the Russian Raiffeisenbank as a provisional measure in a claim filed by IJSC Rasperia Trading Limited. The company brought claims against ten defendants, including the Russian Raiffeisenbank and Austrian construction group Strabag, alleging that Rasperia representatives were removed from management roles at Strabag, its shareholding had been diluted, and due dividends withheld.

In January 2025, the Kaliningrad Region Arbitrazh Court ordered Raiffeisenbank to pay Rasperia EUR 2.044 billion. Raiffeisenbank representatives stated they would challenge the ruling. The appeal hearing is scheduled for 24 April.

Earlier, the Financial Times reported that a number of foreign companies previously planning to leave the Russian market are now showing “moderate interest” in continuing operations in Russia. According to the paper, representatives of global commodity traders and investment banks have begun appearing more frequently in Moscow, and some companies in the process of winding down Russian operations have paused those efforts. However, FT’s sources stressed that a broad return of Western investors to Russia is unlikely in the near future.

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