Austria’s Raiffeisen Bank delays departure from Russia
Austria’s Raiffeisen Bank International (RBI) has postponed plans to exit the Russian market, hoping for a swift resolution to the ongoing Russian invasion of Ukraine, news agency Reuters reported on July 6, citing three sources familiar with the bank’s position.
Raiffeisen had intended to divest its Russian business, which provides payment services to hundreds of companies, by September due to pressure from European regulators.
But according to Reuters, Austria and RBI are resisting regulatory pressure in the hope that the conflict in Ukraine will soon come to an end.
Read also: Austrian bank Raiffeisen to stop issuing payroll cards in Russia
Meanwhile, Austrian officials are stepping up their defense of RBI in Europe and Washington, claiming that the heightened scrutiny of the bank is unjust. Although Austria publicly supports Ukraine, according to the sources, there is no desire to completely sever ties with Russia.
RBI has not yet presented its plan to the supervisory authorities of the European Central Bank (ECB). This makes Raiffeisen’s withdrawal from Russia by September highly unlikely, Reuters said.
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Furthermore, sources at the agency indicate that the bank intends to obtain approval from the ECB before seeking the green light from its shareholders.
Moreover, RBI will require approval from the Russian central bank, the Ministry of Finance, and, in the event of a sale, from Russian dictator Vladimir Putin himself to exit the market.
Previously, it was reported that the European Central Bank had urged Raiffeisen Group to leave the Russian market as soon as possible.
Read also: Last European bank leaving Belarus
Earlier reports stated that Raiffeisen continued to explore potential deals that could lead to the sale or spin-off of Raiffeisenbank Russia.
According to Austrian media, Raiffeisen Bank International may consider exchanging its assets in Russia for assets held by Sberbank of Russia.
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