Raiffeisen Bank continues Russian exit amid sanctions pressure
Austria’s Raiffeisen Bank International is actively working on selling its Russian subsidiary and is ‘talking to several interested parties’ while continuing to reduce its Russian business ahead of the schedule agreed with the European Central Bank, CEO Johann Strobl said in the bank’s Q1 2025 report, released Tuesday.
The bank confirmed it is pursuing multiple exit strategies from the sanctioned Russian market, with Strobl stating, ‘We continue to reduce our business in Russia regardless of geopolitical developments’. Despite ongoing reduction efforts, the exit remains complicated by geopolitical factors, with Strobl adding, ‘It remains to be seen whether geopolitical developments will facilitate the exit from Russia’.
Progress in efforts to wind down operations in Russia and the bank’s successful exit from Belarus, announced last September, received positive recognition from rating agencies, with Standard & Poor’s upgrading RBI’s outlook from ‘negative’ to ‘stable’ at the end of March, specifically citing ‘significant progress in winding down operations in Russia’ as a key factor.
RBI’s exit approach includes both loan portfolio and deposit reductions in Russia. The bank has implemented a zero-interest policy on customer deposits to encourage their withdrawal, while placing excess liquidity with the Russian Central Bank at 21% interest as required by the ECB during the exit process.
According to reports, the ECB has required RBI to cut its balance sheet in Russia by 65% by 2026, compared to its level at the end of Q3 2024. This directive is part of broader efforts by European regulators to limit Western banking exposure in Russia following geopolitical tensions.
RBI’s Russian exit plans have been further complicated by legal challenges, including a recent case involving Russia’s Rasperia Trading Limited. A Russian appeals court confirmed a first-instance judgment on April 25, resulting in approximately €1.87 billion being transferred from Raiffeisenbank Russia to Rasperia. The bank has filed an appeal and is pursuing legal action against Rasperia in Austria.
RBI is maintaining a strong capital position to absorb a potential worst-case scenario in Russia, with its CET1 ratio at approximately 15.9%, calculated assuming a complete loss of equity if Raiffeisenbank Russia were deconsolidated.
https://www.rbinternational.com/en/raiffeisen/media-hub/press-releases/2025/q1-2025-results.html
