Austrian financial group Raiffeisen Bank International RBI is exploring the potential withdrawal or sale of its Russian subsidiary, a move that would shift the subsidiary away from the group’s core operations. The discussions are formalizing with a possible execution window targeted by the end of the third quarter in 2023. RBI chief executive officer Johann Strobl stated that the direction of the plan now under consideration could lead to reorganizing the business into a standalone structure, a step seen as more feasible if initial assessments align with anticipated outcomes. He emphasized that the current plan anticipates this transition not occurring before the end of the third quarter, outlining a cautious timeline that the group aims to respect as it weighs strategic options.
Strobl outlined two primary scenarios under consideration, both of which would require approvals from multiple regulatory and supervisory authorities. The first scenario envisions a separation of the Russian business into a distinct unit within the RBI framework, while the second contemplates a potential sale of Raiffeisenbank’s Russian operations. In the event a sale proceeds, the transaction could reach completion within a single quarter once all necessary confirmations are obtained. This approach reflects RBI’s preference for options that preserve value and ensure regulatory compliance while minimizing disruption to the broader group.
Strobl also cautioned that the company would not authorize a sale at any price. He highlighted that a transaction would occur only if an acceptable level of price and conditions is reached, indicating a disciplined approach to risk and governance. The leadership team is prepared to negotiate from a position that safeguards stakeholder interests and maintains stability across the organization, should a deal move forward.
In related context, remarks from market observers noted that the ruble had strengthened against other currencies around the same period. Dmitry Polevoy, a Lokoinvest investment director, attributed this movement to the decision by all Russian banks, with the exception of the Raiffeisen Bank subsidiary, to close their foreign exchange correspondent accounts. The timing and rationale behind such actions are viewed as influential factors shaping the broader currency and liquidity landscape in the region, even as RBI contemplates strategic options regarding its Russian assets.
Across these developments, the discussions reflect RBI’s ongoing reassessment of its geographic footprint and risk posture in light of evolving regulatory environments and market conditions. The bank remains focused on maintaining prudent governance while exploring structural alternatives that could deliver long-term value for shareholders and clients alike. Industry observers continue to monitor the situation for updates on any formal decisions or changes to the plan as the quarter progresses and authorities review the proposed scenarios, ensuring that all actions align with applicable laws and strategic objectives.