Raiffeisen Bank Faces Potential Multi-Billion Euro Loss in Russia
Updated News from Reuters Vienna
RBI Issues Warnings and Potential Financial Sanctions to Russia for Significant Amounts
It's nails sharp and teeth bared for Raiffeisen Bank International (RBI) as a billion-dollar verdict looms in Russia by December 25th. The upcoming court hearing in Kaliningrad, a city unafraid of the Orthodox religion's holidays, brings a 1.9 billion euro damage claim from Russian investment holding Rasperia. Flanked in the crosshairs are Viennese construction powerhouse Strabag, their core Austrian shareholders, and RBI's Russian subsidiary.
Raiffeisen's Russian division, AO Raiffeisenbank, found itself in a brawl originating from a deal gone sour in 2023. The agreement in question involved Raiffeisen's attempt to buy Rasperia's 24.1% stake in STRABAG for €1.5 billion, but the deal never materialized as anticipated.1
Rasperia, once under the iron fist of sanctioned oligarch Oleg Deripaska, pointed the finger at Raiffeisen and other significant STRABAG shareholders for recklessly applying sanctions and economically expropriating them. This led to Rasperia putting forth a lawsuit demanding compensation.1
The initial decision, passed by the Kaliningrad court, saw AO Raiffeisenbank ordered to hand over 2.044 billion euros in damages and assume Rasperia's STRABAG shares. This decision found further approval from the 13th Commercial Court of Appeal in St. Petersburg.1
Despite Deripaska being stripped of his ownership rights in Rasperia by year's end in 2023, whispers persist that he continues to steer the ship from the shadows. This standoff also serves as a legal battleground for addressing the complexities of sanctions enforcement and navigating business in authoritarian regimes.1
The case poses broader legal quandaries pertaining to using civil law as a workaround for sanctions and whether companies from the West can maintain objectivity in oppressive systems. RBI remains embroiled in legal wrangling, not just in Russia but also in Austria.1
Be sure to keep your eyes peeled for any fresh developments in this high-stakes cat-and-mouse game between Raiffeisen Bank International and Rasperia Trading Limited. It's a power struggle worth more than just mere millions, but billions in question as they strive to secure their respective positions.
- The damage claim from Russian investment holding Rasperia against Raiffeisen Bank International (RBI) is worth 1.9 billion euros.
- Orthodox religious holidays are not deterring the upcoming court hearing in Kaliningrad, which will decide about the damages claimed by Rasperia from RBI, Strabag, and others.
- The business division of Raiffeisen, AO Raiffeisenbank, faces potential financial losses if the court's decision on damages in favor of Rasperia stands.
- The legal standoff between Raiffeisen Bank International and Rasperia Trading Limited is not just about millions, but billions of euros are at stake.
