The Russian central bank revokes all restrictions imposed on Raiffeisen Bank.
Hear Ye! Hear Ye! The Russian central bank has bagged the full payment from Vienna’s Raiffeisen Bank International (RBI), including interest, to the tune of a hefty 2 billion euros. An RBI spokesperson chopped it up to Reuters that the interest payment of 174 million euros was directly deducted from the Russian subsidiary at the end of May. The main amount of 1.9 billion euros was dished out just days after the appeal hearing in April. However, the big question on everyone's lips – who pocketed the cash? – remains unanswered.
Raiffeisen Rollercoaster
Following a Russian appeals court's ruling, RBI was forced to shell out over two billion euros in damages, one of the most severe penalties given to a Western firm still operating in the land of bears. RBI, as the biggest Western bank in Russia, found itself embroiled in a legal spat between Russian firm Rasperia and Austrian construction giant Strabag. Rasperia, formerly linked to the ominous oligarch, Oleg Deripaska, sought compensation for its frozen stake in Strabag due to EU sanctions against Russia. Since RBI's main shareholder, Raiffeisenlandesbank Niederösterreich-Wien, and other Austrian core shareholders of Strabag do not own any assets in Russia, it was the Russian RBI subsidiary, sporting a capital of approximately 5 billion euros, that found itself in the hot seat.
Time to Raise the Bat
RBI intends to contest the verdict in Austria, with a lawsuit set to be filed with the Vienna Commercial Court before the month is over. The bank hopes to liquidate the frozen Rasperia shares in Strabag, including dividends, and secure the proceeds as compensation.
Grabbing the Exit
Raiffeisen
Since the start of the conflict in Ukraine, RBI has been scouting the Russian countryside for exit routes. Despite ongoing talks with potential buyers, Russia still hasn’t given the ol' thumbs up for a sale. According to RBI's CEO, Johann Strobl, things are still up in the air.
Wien ·
As part of the legal wrangling, a court order was issued preventing RBI from selling its Russian subsidiary. This order is still in play, and RBI has applied for its cancellation with the competent court in St. Petersburg – but as of yet, there's been no sign of a ruling. RBI is hoping that once the compensation amount is paid off, Russia will lift the sales ban.
(Source: Reuters, edited by the newsroom team)
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Line chart with 53 data points.Chart für RaiffeisenThe chart has 1 X axis displaying Time. Data ranges from 2024-06-03 00:00:00 to 2025-06-04 14:00:00.The chart has 1 Y axis displaying values. Data ranges from 16.27 to 27.48.Lade...End of interactive chart.
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- In the midst of the heated legal battle between RBI and Rasperia, the question of where the 2 billion euros paid by RBI to the Russian central bank will eventually end up remains unanswered, given that the Russian subsidiary of RBI had to fork out the money.
- Concurrently, the debate about the future of RBI's business in Russia persists, as the bank continues its efforts to contest the court verdict and seek the sale of its subsidiary, which remains under a sale ban by Russia.
