The Russian war of aggression against Ukraine is causing increasing problems for Raiffeisen Bank International (RBI). In Kyiv stand CEO Johann Strobl and fellow board member Andreas Gschwenter on a list of people for whom the State Department and the National Anti-Corruption Office recommend sanctions such as entry bans or account bans.
The purpose of this list is to put pressure on individuals and companies that could undermine the security, sovereignty and independence of Ukraine. Background: Raiffeisen Russia has offered a loan moratorium to Russian soldiers. The RBI explains that it is “obligated by law, like all Russian banks”. It has not yet been decided whether Kyiv will actually impose sanctions.
In the first three quarters of 2022, RBI in Ukraine made a loss of 13 million euros. The European Bank for Reconstruction and Development also has a 30 percent stake in the subsidiary – which could be a protective shield against sanctions against the institute itself.
The profit of the RBI Russia subsidiary more than quadrupled in the first three quarters to 1.42 billion euros. One of the reasons for this is that, because of Western sanctions, it is one of the few banks through which Russians can still transfer money abroad – at high fees. However, due to Russian counter-sanctions, RBI cannot transfer the profit to Vienna. Raiffeisen Russia has largely stopped lending business since the outbreak of war and reduced the volume by around 25 percent, RBI reports.
There is speculation about a Russia exit. That’s complex. A buyer and purchase price would probably have to be acceptable to the Kremlin.
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