The Austrian lender Raiffeisen Bank International (RBI) is pursuing a restructuring path after determining that a buyer for its Raiffeisen subsidiary could not be secured. In a report attributed to Reuters, the bank is moving to separate its Russian unit from the umbrella group, creating a stand-alone entity that would operate independently from RBI while remaining connected to shareholders through a newly listed vehicle in Vienna.
The described plan centers on converting the Russian operations into a standalone company. Once established, the shares of this new entity would be held by RBI shareholders, who would retain the option to divest their stake in a business that maintains ties with Russia if they choose to do so. The move is intended to provide clearer governance and increased liquidity, with the investment community watching closely to see how the separation unfolds and how the market responds on the Vienna Stock Exchange.
Austrian regulators have signaled support for reorganizing Raiffeisen as an independent company, a step that would simplify the group’s corporate structure. Yet the process faces friction from the European Central Bank, which is tasked with evaluating and approving arrangements that affect the bank’s exposure to Russia. The ECB’s assessment focuses on risk controls, compliance safeguards, and the broader implications for financial stability amid sanctions regimes.
RBI chief executive Johann Strobl indicated in early May that the group would consider withdrawing or selling its Russian subsidiary as part of a broader strategic review. He highlighted the possibility that the separation could be completed by the latter part of the year if negotiations proceed smoothly. In the same period, RBI moved to terminate informal correspondent banking relationships with nearly all Russian banks, with Raiffeisenbank, the RBI subsidiary operating in Russia, as the sole exception. This pivot reflects an ongoing recalibration of RBI’s footprint in Russia in response to heightened sanctions and the evolving regulatory environment.
These developments come after a year marked by a contraction of RBI’s economic activity in Russia, driven by sanctions and the challenges of doing business in a heavily regulated and geopolitically sensitive market. The bank’s quarterly financial statements presented earlier this year highlighted a retreat from previous levels of activity, signaling tighter exposure levels and a strategic shift toward reducing cross-border risk. Observers view the transformation as part of RBI’s broader effort to realign its international operations with the risk appetite of its investors and the expectations of European authorities, while preserving the core strengths of the parent group in Europe and beyond. The trajectory of the deal remains closely tied to regulatory timing and market reception, with stakeholders waiting for further clarity on the final structure and any potential implications for shareholders, customers, and employees across the RBI network.