The leadership of one of the largest Austrian banking groups – Raiffeisen Bank International (RBI) – has not yet approved the final deadlines for leaving Russia. Plans to spin off Russian businesses (Raiffeisenbank and other assets) are being put on hold amid RBI hopes for a speedy end to the military conflict in Ukraine, Reuters reported citing industry sources.
In the bank’s management, the issue of keeping or abandoning the Russian business caused controversy. RBI was originally scheduled to spin off its Russian business by September 2023 amid increased pressure from the European Central Bank (ECB). However, Raiffeisen decided to resist the pressure of the European regulator in the hope of softening the geopolitical situation in the foreseeable future. As a result, RBI’s strategy to spin off its Russian business has not yet been submitted to the ECB, making it difficult to sell or transfer the group’s assets in the coming months. In addition, the withdrawal of the Austrian banking group from Russia is delayed due to the unwillingness of the authorities of the republic to break long-term economic ties with Moscow. For this reason, Austrian officials are strengthening RBI protection in Europe and the United States.Related content:China has begun the hunt for new precious metals.How will the search in the Himalayas help the Chinese beat the whole world? dealt a devastating blow to the global economy?June 21, 2022 At the same time, the representative of Raiffeisen assured that the bank’s management will continue to deal with the issue of selling the unit or its branch. RBI does not abandon plans to reduce its presence in the Russian market. Earlier, the head of the ECB supervisory board, Andrea Enria, called on European banks to expedite their exit from Russia. The pace of reducing the presence of credit institutions, she said, is still insufficient. Against this backdrop, Enria called on Western banks to present clear plans to exit Russian business.