Russian Court Freezes Raiffeisen Shares, Blocks Local Bank Sale

A Russian court has frozen the shares of Raiffeisen in a local bank, preventing any sale of these assets. This legal move halts the bank’s ability to proceed with planned transactions involving Raiffeisen’s shares, affecting its operations and strategic decisions in the region. The court's action creates significant implications for Raiffeisen’s financial interests and business activities locally.

A Russian court has frozen shares in Raiffeisen Bank International’s (RBI) local subsidiary, the largest Western bank in Russia, blocking any sale of the unit and intensifying the conflict between Moscow and the West. Despite RBI's intention to divest its Russian business, crucial for international payments, little progress has been made over the past two years of the Russia-Ukraine conflict.

This court decision led to a more than 7% drop in RBI's stock on Friday. Raiffeisen confirmed that while the sale is blocked, operations and management of the Russian unit remain unaffected. The bank plans to challenge the court's ruling, marking it as the most significant freeze involving a Western bank in Russia to date.

RBI, much larger than Italy’s UniCredit, is under scrutiny from Western regulators and the European Central Bank, which is pushing for a reduction in its Russian operations. The Russian authorities, however, prefer RBI to stay due to its role in facilitating international payments for a large number of customers.

The bank has become increasingly profitable from its Russian operations since the Ukraine war began, contributing significantly to its earnings. The freeze is linked to a recent claim by Russian investment firm Rasperia against Austrian construction group Strabag and its shareholders, though RBI itself is not accused of any wrongdoing. This issue stems from RBI’s attempt to purchase a stake in Strabag, which was entangled with Oleg Deripaska, a figure sanctioned by the U.S. Treasury.

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Source: Reuters‍