abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb

The content is also available in the following languages: Deutsch, Русский

Article

30 Mar 2023

Author:
Sam Jones, FT,
Author:
Wirtschaftswoche

Raiffeisen in talks over sale of Russian banking arm amid growing pressure from regulators & Western govts.

finance.rambler.ru

Raiffeisen in talks over sale of Russian banking arm, 30 March 2023

Austria’s Raiffeisen is in talks with two potential suitors for the sale of its Russian banking arm — the largest western-controlled lender left operating within the Kremlin’s territory.

Raiffeisen has come under increasing pressure from regulators and western governments in recent months over the status of its business in the country, which has boomed since Moscow launched its invasion of Ukraine in February last year.

The bank’s Russian arm manages assets of just under €27bn, with a book value of €4.1bn. In 2022 it generated profits of €2.2bn — 60 per cent of the earnings for the entire Raiffeisen group. However, Russian laws enacted since the country attacked its neighbour prevent the division from paying any dividends to its Vienna-based parent.

Speaking at Raiffeisen’s annual meeting...chief executive Johann Strobl said the bank was “progressing potential transactions” and that its management “recognise the urgency for action which the war has created”.

A senior Raiffeisen executive told the Financial Times the bank had narrowed discussions to two “viable” bidders and would work intensively in the coming weeks to assess whether a deal could be put together. The bank is hopeful it can agree terms to an exit this year.

While Raiffeisen is keen to maximise value from any transaction for shareholders, the big stumbling block is likely to be political, given recently introduced legislation that means Vladimir Putin would need to personally approve any sale.

A “plan B” being explored by Raiffeisen is a spinout of its Russian business into a separate, European-listed entity. Such a measure is seen as the more costly of the two options but also more politically viable, and will become the bank’s preferred course of action if both bids in Russia fall through...

Part of the following timelines

Ukraine invasion: Banks & financial institutions seek to cut ties with Russia

Ukraine invasion: Banks & financial institutions seek to cut ties with Russia

Privacy information

This site uses cookies and other web storage technologies. You can set your privacy choices below. Changes will take effect immediately.

For more information on our use of web storage, please refer to our Data Usage and Cookies Policy

Strictly necessary storage

ON
OFF

Necessary storage enables core site functionality. This site cannot function without it, so it can only be disabled by changing settings in your browser.

Analytics cookie

ON
OFF

When you access our website we use Google Analytics to collect information on your visit. Accepting this cookie will allow us to understand more details about your journey, and improve how we surface information. All analytics information is anonymous and we do not use it to identify you. Google provides a Google Analytics opt-out add on for all popular browsers.

Promotional cookies

ON
OFF

We share news and updates on business and human rights through third party platforms, including social media and search engines. These cookies help us to understand the performance of these promotions.

Your privacy choices for this site

This site uses cookies and other web storage technologies to enhance your experience beyond necessary core functionality.