Withdrawal from Russia

Sales ban: Legal setback for RBI

Raiffeisenbank is a long way from withdrawing from Russia.(Bild: APA/AFP/ALEXANDER NEMENOV)

The planned exit of Raiffeisen Bank International (RBI) from Russia has become much more difficult. This is due to a decision by a Russian court, which is tantamount to a sales ban.

Accordingly, the bank was de facto prohibited from selling its Russian subsidiary to potential buyers by means of a temporary injunction, as RBI announced in a press release on Thursday evening. However, the plan to reduce its business in Russia remains in place, a spokesperson emphasized.

For the time being, it is not legally possible for the bank to transfer shares in the Russian subsidiary and thus sell shares due to the court's restraining order. The operating business of Raiffeisenbank Russia is not affected by this, nor are other property rights impaired, the spokesperson explained.

Raiffeisen announces countermeasures
RBI will "try all legal means to reverse today's court decision", the statement said. However, this would complicate the sales process and "inevitably lead to delays".

The background to the decision is a court case brought by Rasperia Trading Limited, owned by the Russian investor Oleg Deripaska, against the Austrian construction group Strabag and its Austrian core shareholders. Although RBI is not a party to the proceedings, Raiffeisenbank Russia is named in the lawsuit as being connected to the other defendants.

Complicated construct failed
RBI's options for action with regard to its Russian business are thus further restricted for the time being. Bank CEO Johann Strobl recently brought a partial sale into play, and a spin-off has also been mentioned as an option in the past. The attempt to get frozen funds out of the country with the help of a complex deal failed at the beginning of May. Shares in Strabag originally held by Deripaska were to be acquired by the Russian RBI subsidiary and then flow to the parent company as a dividend in kind.

Raffeisen Bank International is the largest western bank in Russia. After the Russian invasion of Ukraine, it came under pressure to reduce or abandon its business there. The bank continues to earn a lot of money in the country: in the first half of 2024, it earned 705 million euros, around half of the Group's profit after tax. No dividends flow to Vienna.