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Raiffeisen Bank International, the largest western bank still doing business in Russia, has halted attempts to sell its unit in the country amid a rapprochement between Washington and Moscow, according to sources familiar with the situation.
RBI has faced pressure from regulators and foreign governments, including the EU and US, to divest its Russia business following President Vladimir Putin’s full-scale invasion of Ukraine in 2022.
The sale process became even more complicated when a Russian court froze the shares of Raiffeisen Bank’s Russian subsidiary in September, followed by a €2 billion damages claim in January. This legal battle put a halt on any ownership transfer of shares in the Russian arm.
In February, RBI made the decision to pause sale efforts as diplomatic relations between Moscow and Washington began to thaw, according to insiders. The global uncertainty and shifting US-Russia dynamics were cited as reasons for the temporary halt.
While efforts to sell the unit have currently ceased, the situation could change internally, as per sources. The reasons behind the pause, whether geopolitical events or the court case, were not disclosed.
In a statement, RBI confirmed that the sale process is ongoing but hindered by the court case, which has blocked any potential transaction. The bank continues to wind down its business in Russia in compliance with European Central Bank requirements.
The pause in the sale process coincides with the US showing interest in resuming economic cooperation with Russia. Steve Witkoff, Trump’s special envoy, mentioned discussions on “compelling commercial opportunities” after his recent meeting with Putin.
Authorities and governments have grown increasingly impatient with Raiffeisen Bank for continuing operations in Russia, three years post-invasion. Last year, the European Central Bank urged RBI and other European banks in Russia to expedite scaling back operations.
Although RBI has reduced lending activity and stopped accepting new customers in Russia, it still maintains a larger presence compared to competitors. However, the court case has impacted its financials, resulting in a net loss of $926 million in the fourth quarter of 2024, due to a significant impairment charge related to the ruling. An appeal is scheduled for April 24.
