Austrian group Raiffeisen Bank International (RBI) could not find a buyer for Raiffeisen and therefore decided to separate its Russian subsidiary from the group. In this respect informs Reuters, citing the source.
As noted in the publication, potential investors in RBI’s Russian business fear secondary sanctions, so no buyers have been found for the bank. Following the split of Raiffeisen into a separate company, the bank’s securities will be traded on the Vienna stock exchange. RBI shareholders will own the shares of this new structure and will be able to get rid of their shares in an entity doing business with Russia if they wish.
Austrian authorities support the transformation of Raiffeisen into a separate company. However, the publication says the RBI is having some difficulties getting the transaction approved by the European Central Bank. The regulator controls the bank’s connections with Russia.
RBI CEO Johann Strobl said on May 6 that RBI may withdraw or sell its Russian subsidiary from the group’s periphery. Moreover, this could happen by the end of the third quarter of 2023. On May 5, the RBI management decided to terminate correspondent relations with all Russian banks. The only exception was Raiffeisenbank, its own subsidiary in Russia. At the beginning of this year, the level of business activity of RBI in the Russian market fell. The Austrian organization minimized its presence on the territory of the Russian Federation. This was due to the difficulty of doing business against the backdrop of international sanctions, which was disclosed in the presentation of the RBI financial statements for the first quarter of this year.