Raiffeisen Bank International (RBI) has faced mounting pressure to leave the lucrative Russian market since the onset of the conflict. However, their planned move to do so has been stalled by sanctions imposed on them. The Austrian bank announced its decision to abandon an agreement to acquire shares in Strabag, a construction group, due to concerns raised by US Treasury officials over the legality of the transaction involving Russian oligarch Oleg Deripaska.
Concerns were raised about the complex swap transaction that would have involved RBI’s Russian subsidiary obtaining shares in Strabag from Deripaska and transferring them to Vienna as a dividend. However, uncertainties surrounding the intermediary company and Deripaska’s involvement led to the deal’s collapse.
The ongoing conflict in Ukraine and RBI’s substantial tax payments to Russian authorities further underscore the challenges they face in disengaging from the Russian market. Despite reducing their loan volume in Russia and receiving warnings from the ECB, RBI still faces scrutiny over its operations in the country. As a result, continued presence poses reputational risks for RBI, especially amid concerns that their withdrawal plans are not being taken seriously.