Raiffeisens Russian Bank Sale on Hold Amid Optimism in U.S.-Russia Relations

Austria’s Raiffeisen Bank International (RBI) suspended the sale of its Russian subsidiary in February, amid indications of a possible thaw in U.S.-Russia relations, as reported by the Financial Times on Friday, citing anonymous sources familiar with the situation.

One source indicated to the FT that this pause is aimed at evaluating the situation and considering potential shifts in the U.S. stance, suggesting that the bank is observing whether an improvement in diplomatic relations might alleviate the pressure from Western regulators.

Later on Friday, Christoph Danz, a spokesperson for Raiffeisen Bank International AG, refuted the FT report in comments to the state-owned news agency RIA Novosti.

Raiffeisen is currently the largest and most profitable Western bank still operating in Russia since the onset of Moscow’s full-scale invasion of Ukraine in 2022. It has encountered pressure from both U.S. and European authorities to diminish its involvement in the Russian market.

In 2023, the bank disclosed intentions to either sell or divest its Russian operations.

According to the FT, the decision to pause the sale coincided with U.S. President Donald Trump advocating for a negotiated peace in Ukraine and expressing a readiness to resume more extensive economic engagement with Russia.

RBI’s exit strategy from Russia has already been hampered by legal challenges from the Kremlin.

In September, a Russian court imposed a freeze on Raiffeisen’s shares in its local subsidiary. Additionally, in January, the bank faced a damages fine of 2 billion euros ($2.2 billion), contributing to a net loss of $926 million for the fourth quarter of 2024 — marking the bank’s first quarterly loss in almost ten years.

RBI confirmed to the FT that the court’s ruling has effectively halted the sale process.

“The shares of RBI in Raiffeisen Bank Russia are currently blocked, making any transaction impossible at this moment,” the bank stated.

The bank plans to appeal the court’s ruling on April 24.