Austrian Raiffeisen Bank International is considering leaving Russia, sources told Reuters, in a move that will mark the first European bank to do so, following Russia’s invasion of Ukraine.
Such a decision, which could lead one of the largest banks in Central and Eastern Europe to leave both Russia and Ukraine, is not immediate, but can be activated if its operations in these countries require further cash. or chapters, cited one of the sources.
RBI has been active in Russia since the collapse of the Soviet Union 30 years ago, and its operations there (it’s the 10th largest asset bank in Russia) accounted for one-third of the 1.5% net profit last year. billion.
The contingency plan shows that some foreign companies operating in Russia are finding it difficult to adjust to the heavy sanctions imposed on Moscow by the West, and the ensuing turmoil in Russian markets.
A second source stressed that the Austrian bank could leave Russia and Ukraine, handing over the ownership to another entity, without giving details.
A temporary suspension of the activity is also an option, the source stressed.
The Russian subsidiary of RBI said in a statement that “Raiffeisenbank plans to ensure the uninterrupted availability of its financial services to customers, in accordance with applicable law and the orders of the regulatory authority.”
The potential cost to the RBI of leaving Russia and Ukraine is unclear. Both sources say it was financially strong enough to withstand any disruption to its banking operations there.
The second source said that any decision to leave Russia should be made in coordination with the central bank, which may impose its own terms.
Source: Capital
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