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According to those familiar with the situation, amid the settlement between Washington and Moscow, Raiffeisen Bank International, the largest western bank still operating in Russia, has halted attempts to sell domestic units in the settlement between Washington and Moscow.
The RBI is under pressure from regulators and foreign governments, including the EU and the US, to sell its Russian operations following President Vladimir Putin’s full-scale invasion of Ukraine in 2022.
The already complicated sales were further hampered in September after a Russian court frozen shares in the Russian subsidiary of Raiffeisen Bank, and in January the bank became hooked for 2 billion euros in damages. The RBI said at the time that the legal battle had frozen the transfer of ownership of stock to Russian weapons.
However, according to two people with knowledge of negotiations, the RBI decided to suspend sales efforts in February as Moscow and Washington began to become politically re-engaged.
One person familiar with the consultation said global uncertainty and changes in US-Russia relations lie behind the halt. “It’s to assess the situation and whether the US may change its position,” they said.
Third parties said that serious sales efforts have been “stop” for now, but internally, things could change again. They refused to say whether the geopolitical event or court case was behind the suspension.
In a statement, RBI said its sales process was “ongoing,” but added that the trial has stopped enforcement of the transaction.
“At this point, trading is not possible at this time as Raiffeisen Bank Russia’s RBI stock is blocked.” RBI said efforts to remove the business are still ongoing in line with the requirements of the European Central Bank.
The suspension of the sales process shows serious interest in resuming economic cooperation with Moscow, as the US warned Austrian banks at risk that access to the US financial system had been reduced due to Russian relations.
Trump envoy Steve Witkov said that after meeting Putin for the third time last week, the US and Russia are discussing “a very attractive commercial opportunity.”
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Authorities and the government were panicked by Austrian lenders who were still active within the country even three years after the invasion. Last year, the European Central Bank ordered an order in which the RBI and other European banks remain operating in Russia, accelerated efforts to reduce their business there if they were unable to sell.
The RBI has tried to reduce its lending activities in Russia and stop undertaking new clients, but it maintains a larger business than its rivals.
But the courts are making money. RBI reported a net loss of $926 million in the fourth quarter of 2024. This is a first quarter net loss over nine years on a major impairment charge related to a Russian court ruling. The appeal is set for April 24th.
