Raiffeisen Bank International has failed in another attempt to sell a stake in its Russian business. Moscow seeks to maintain a key financial bridge with the West. This is reported by Reuters with reference to sources familiar with the situation, writes UNN.
Details
It is noted that Raiffeisen Bank in Russia is the largest creditor in the country not subject to sanctions, which makes it critical for trade payments, primarily for gas exports to Europe.
According to sources, Russian officials partly opposed the sale due to fears that the acquisition of a stake by a Russian company could lead to Western sanctions against the bank.
Raiffeisen Bank sought to sell a stake in its Russian unit to a local buyer in the hope that the Kremlin would unblock billions in profits from the business. It is also under pressure from the United States and the European Union over Russia's war in Ukraine.
A Raiffeisen spokesman said the bank was scaling back its business in Russia and that any sale of its business required Moscow's approval.
"Raiffeisen Bank International is negotiating the sale of its Russian subsidiary," the spokesman said, adding that the bank could not give a timeframe, "as numerous regulatory approvals are required, including from the Russian authorities."
The publication noted that the bank's CEO, Johann Strobl, had tried several times in the past to sell a stake in the Russian business. The latest attempts to sell failed due to rising tensions between Moscow and the West, as European leaders stepped up preparations to use tens of billions of euros in frozen Russian assets to support Ukraine.
Currently, Raiffeisen continues to be an important bank for Russia in terms of gas and other payments, even despite reduced activity. Russia's resistance to selling shares is explained by its desire to maintain the remnants of economic ties with Europe, which still buys billions of euros worth of Russian oil and gas, albeit much less than before the war.
A source familiar with Raiffeisen's operations in Russia said that the country's authorities want to keep it as a gateway for money transfers with Europe, and that the bank intends to continue operating there. According to him, despite the bank's restrictions on outgoing payments in euros, a small number of large Russian companies were allowed to make payments abroad.
Recall
As UNN previously wrote, Austrian Raiffeisen Bank transferred 9 billion euros to Russia in January-February 2022. The funds were provided in euros, dollars, and Swiss francs, likely to support the Russian economy.