Raiffeisen Bank International (RBI) has paused plans to sell its Russian operations amid “rapprochement between Washington and Moscow.”
The bank made the decision in February, according to the sources cited by the Financial Times.
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Sources said the pause was taken “as Moscow and Washington began to re-engage politically.”
“It is in order to assess the situation and if the position of the US might change,” they said.
RBI has been pressured by regulators and governments in the EU and the US to divest its Russian operations, following the start of Russia’s full-scale invasion of Ukraine in 2022.
While Raiffeisen says the sale process is still technically active, a Russian court ruling has halted any deal for now.
In February, the Kaliningrad Regional Arbitration Court awarded €2 billion ($2.1 billion) in damages to Rasperia Trading Limited, a Cyprus-based firm that US authorities identify as part of a network of companies linked to sanctioned Russian oligarch Oleg Deripaska.
The court also authorized the seizure of assets from Raiffeisen’s Russian division to satisfy the award, effectively freezing the sale.
Reuters categorized the ruling as “one of the largest awards of damages yet,” but RBI said it would appeal the judgment.
Though a spokesperson for Deripaska denied any current link to Rasperia, US officials have long maintained that he retains influence over the company. The businessman has been under US sanctions since 2018 for his alleged ties to the Kremlin and involvement in malign activities, including interference in democratic processes.
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Raiffeisen has said it will appeal the judgment. A lawyer for the bank described the court proceedings as irregular, telling Reuters that unidentified armed individuals in balaclavas were present in court, seated beside the defendants in what was seen as an attempt at intimidation.
The lawsuit stems from a failed 2023 deal in which Raiffeisen planned to buy Rasperia’s 24.1% stake in Austrian construction company Strabag for €1.5 billion. The stake had been frozen due to sanctions imposed after Russia’s 2022 invasion of Ukraine. The collapse of that transaction triggered a broader legal battle involving Strabag, its Austrian shareholders, and Raiffeisen’s Russian branch.
Raiffeisen is one of the few remaining major Western banks still operating in Russia and has faced growing pressure from EU and US regulators to leave the market.
Although the bank has repeatedly pledged to withdraw, it has continued to profit significantly – reportedly earning around €6 billion ($6.29 billion) from its Russian operations through international payments and domestic deposits, according to Reuters.
In mid-2024, Raiffeisen promised to speed up its exit from Russia, but the February court ruling has delayed that effort. Legal experts and bank representatives argue that the lawsuit may reflect broader efforts by Russian courts to force the release of blocked Western assets – posing serious challenges for foreign businesses still operating in the country.
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