Rebuke "surprising"

Raiffeisen may soon be in trouble with the ECB

A good two years after the start of the Russian war of aggression in Ukraine, Raiffeisen Bank International (RBI) has still not succeeded in withdrawing from business in Russia. This appears to be a thorn in the side of the European Central Bank - the bank will therefore soon have to prepare itself for a greater need for talks.

The Austrian bank expects a request from the ECB in the near future to reduce its business activities in Russia more quickly, as RBI announced in an ad hoc announcement on Thursday. However, the bank has been pursuing this goal at its Russian subsidiary AO Raiffeisenbank since February 2022, RBI said.

RBI does not want to give up outstanding money
RBI is aware of the content of the ECB's letter, a spokesperson for the bank explained in the ad hoc announcement: According to the letter, customer loans would have to fall significantly by 2026 - by up to 65 percent compared to the end of the third quarter of 2023. And RBI would have to reduce international payments from Russia accordingly. The latter condition is relatively easy to fulfill. However, the credit volume will be more difficult if the outstanding money is not to be waived.

"The requirements proposed by the ECB go well beyond RBI's own plans to further reduce its business activities in Russia and could have a negative impact on RBI's sales options with regard to AO Raiffeisenbank," RBI also announced.

RBI: Possible rebuke "comes as a surprise"
 "The ECB pressure does not improve the strategic situation of RBI," said Florian Beckermann, Chairman of the Association of Investors (IVA), in a press release on Thursday afternoon. "RBI's relationship with the ECB is known to be not free of conflict, but such a possible rebuke comes as a surprise. "

According to the bank, it has already taken extensive measures to minimize the risks at its Russian subsidiary bank. And it is determined to achieve the deconsolidation of AO Raiffeisenbank, for example by selling the unit. However, this would also require approval from the Russian side, a spokesperson noted.

Bank wants to take over Deripaska's stake in Strabag
"On the other hand, one has to ask whether the ECB has not been sensitized by the announced Strabag-Deripaska deal," Beckmann pointed out. The bank had announced in December that it intended to acquire 28.5 million shares in the Strabag construction group via its Russian subsidiary and pass them on to RBI as a dividend in kind. In order to circumvent sanctions, the shares are said to have been traded via a Russian investor.