Raiffeisen is stuck in Russia: court and politics block sale of assets
18 April 15:33
Austria’s Raiffeisen Bank International (RBI), one of the few large Western banks that continue to operate in Russia after the full-scale invasion of Ukraine, has once again found itself in the center of public and political attention. Despite repeated promises to reduce or cease business in Russia, the bank is still an active player in this market, "Komersant Ukrainian" reports.
In April 2025, the Financial Times reported that Raiffeisen had allegedly suspended the sale of its Russian unit, citing “political warming” between the United States and Russia, as well as legal difficulties. But the bank quickly denied this information, saying that negotiations with potential buyers were ongoing.
What happened: media version and the bank’s reaction
According to the Financial Times, the bank decided to temporarily suspend the sale of assets in Russia. The article stated that the decision was influenced by two factors:
1. The warming between the US and Russia, which, according to journalists, created a “window” for the bank to maneuver.
2. The complicated legal situation – in particular, a Russian court ruling that froze the shares of RBI’s subsidiary in Russia, making any transactions difficult.
In response, RBI made a public statement via Reuters, denying that the process had been halted. Representatives of the bank emphasized that “no decision has been taken to halt divestment efforts” and that the bank “continues to work on the legally complex sale process.”
Legal obstacles: courts and asset freezes
In January 2025, the Moscow Arbitration Court imposed a fine of more than €2.1 billion on Raiffeisen in a case related to the Cyprus-based Rasperia Trading company owned by Russian oligarch Oleg Deripaska. The reason was the bank’s failure to execute a transfer of funds that was blocked due to sanctions restrictions.
In addition to the fine, the court ruled to freeze 100% of Raiffeisen Bank’s shares in Russia, which effectively made any sale of the asset impossible. An appeal hearing in this case is scheduled for April 24, 2025. The future of the bank’s assets in Russia largely depends on its outcome.
Operations in Russia are a “profitable burden”
Despite public pressure, RBI remains one of the most profitable foreign banks operating in Russia. At the end of 2024, the profit of the subsidiary in Russia amounted to 705 million euros, which is approximately half of the consolidated profit of the entire banking group.
This indicator ensures the attractiveness of the Russian market for the bank, but at the same time undermines the reputation of RBI in the EU and the United States. In particular, the US Treasury has repeatedly emphasized that it is closely monitoring the bank’s activities in Russia. In 2023, the agency even sent official requests for explanations, after which Raiffeisen announced its intention to reduce its presence.
As of the beginning of 2025, the volume of the bank’s Russian assets had decreased by 60%, but the final withdrawal from the market did not take place.
Political context: US, sanctions and the bank’s strategy
Raiffeisen operates in a politically uncertain environment. On the one hand, the European Central Bank is actually demanding that RBI reduce its operations in Russia. On the other hand, the Austrian state, as one of the group’s major shareholders, demonstrates a more restrained position.
After the information about the temporary “freezing” of the sale appeared, some analysts suggested that the bank may be waiting for a political détente, in particular after the US presidential election in November 2024. This situation may explain the delay in taking active steps to finally withdraw from Russia.
Reaction of Ukraine and the international community
In Ukraine, Raiffeisen has long been criticized for continuing its cooperation with Russia. As early as 2023, the NBU asked the ECB to increase pressure on the bank. There were calls in the Verkhovna Rada to ban the bank’s activities in Ukraine, but this never happened, mainly due to fears of setting a precedent for interference in the work of a systemic bank.
Pressure is also growing from the international community, particularly the United States. In February 2025, US Treasury officials announced that they were ready to review the sanctions monitoring regime for banks that “are not actively reducing their activities in Russia”.
What to expect in the future
Formally, Raiffeisen Bank International has not stopped its efforts to sell its Russian business. But in fact, the bank is in a legal trap created by both the actions of Russian courts and the complexity of international regulation.
The key date is April 24, 2025. If the Court of Appeal lifts the asset freeze, it will open the way for active negotiations with potential buyers. If the decision remains in force, the bank will find itself in a situation where it is legally unable to fulfill its obligations to EU supervisors and its own shareholders.
Raiffeisen Bank International has become a hostage to double pressure – legal pressure from Russia and reputational pressure from the West. Despite the loud statements, a real exit from the Russian market is still far away. Given the geopolitical shifts, legal uncertainty and financial risks, the situation around RBI is turning into a test for the entire Western banking system: how far it is willing to go in terms of moral responsibility to the victims of war.
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