RBI is working on a sale or spin-off of its Russian unit, but could not provide a timeline.
Austrian Raiffeisen Bank International will continue to reduce its large and profitable business in Russia under an agreement with the European Central Bank. This is stated in the bank’s quarterly report.
As you know, the bank is under pressure from the authorities to reduce its presence in the country after the start of the war against Ukraine.
“RBI will further reduce Raiffeisenbank Russia’s business in line with ECB requirements,” the bank said in a statement.
It was noted that loans to customers fell by almost 60% from a peak in the second quarter of 2022 to 5.8 billion euros, extensive restrictions were introduced on payments from Russia, and measures were taken to more further reduce customer deposits.
The bank also reported an increase in consolidated income in the second quarter of 14% to 661 million euros. The RBI made half of its profits in Russia, but because of Western sanctions, these profits remained with the local subsidiary bank.
In a statement, the bank said restrictions in Russia mean the bank provides lending and payment services only to a pre-approved list of large, international companies. Raiffeisen does not offer time deposits and current accounts do not earn interest, and the bank charges a high service fee.
RBI said it was working on a sale or spin-off of its Russian unit, but could not provide a timeline because any deal would require multiple approvals.
It was previously reported that Raiffeisen plans to start appearing on the Russian market in the summer.
We remind you that Raiffeisen Bank International has found a dangerous way to reduce the costs of withdrawing your money from Russia. In particular, the bank entered into an agreement with Oleg Deripaska, who is under EU sanctions. The Austrian bank expects to receive an asset worth 1.1 billion euros, while the loss is less than 30%.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.