In February, RBI decided to suspend the sale of its Russian subsidiary as Moscow and Washington began to renew dialogue, writes the Financial Times citing sources.
After the war began, regulators and foreign governments, including the EU and the USA, insisted on the exit of a major European bank from the Russian market.
In September last year, the already complicated sale process was hindered by a Russian court decision that froze the shares of the Russian "subsidiary" of Raiffeisen Bank. In January, the court held the bank liable for damages amounting to 2 billion euros. At the time, RBI stated that the legal dispute imposed a ban on transferring any ownership rights to the shares of its Russian subsidiary.
According to one of the publication's interlocutors, the real reason for halting the sale was global uncertainty, as well as changing relations between the USA and Russia: "This is done to assess the situation and whether the USA's position may change." Another source added that although serious attempts to dispose of the Russian subsidiary have "ceased" for now, the situation may change again.
In a statement, RBI says that the sale process is "ongoing," but adds that the legal proceedings have halted the execution of any deal: "At the moment, RBI's shares in Raiffeisen bank Russia are blocked, and therefore the transaction is not possible at this stage." The bank clarified that efforts to wind down business in Russia are still ongoing in accordance with the requirements of the European Central Bank.
Last year, the European Central Bank ordered RBI and other European banks still operating in Russia to expedite efforts to reduce their business in the country if they cannot sell it.
RBI made efforts to reduce lending activity in Russia and stop attracting new clients, but maintained a larger business there than competitors. However, the legal proceedings affected its income. In the fourth quarter of 2024, RBI reported a net loss of $926 million — the first quarterly net loss in the last nine years.