Shares in Raiffeisen Bank International (AT:RBI), listed on the Wiener Börse AG, closed down 7.12% on Friday (Sept. 6) following Russia’s court ruling to block the sale of the Austrian financier’s Russian subsidiary.
RBI, the largest western bank still operating in Russia, shared the day before that a Russian court had issued a preliminary injunction imposing an immediate transfer ban on its Russian subsidiary, AO Raiffeisenbank.
The decision is related to the legal proceedings recently initiated by Rasperia Trading Limited in Russia against Austrian construction firm STRABAG SE, its Austrian core shareholders and AO Raiffeisenbank. AO Raiffeisenbank is mentioned in the claim as related to the other defendants, although not accused of any wrongdoing. RBI is not a party to these proceedings.
“As a result of today’s decision RBI cannot transfer its shares in AO Raiffeisenbank. This complicates the sales process in which RBI seeks to sell a controlling stake in AO Raiffeisenbank – and will inevitably lead to further delays. RBI will attempt to reverse today’s court decision by all legal means” the bank said.
Raiffeisen Bank, Austria’s second largest bank by revenue, first opened its fully-owned Russian subsidiary in 1996. The Russian subsidiary is so profitable, accounting for half the bank’s income last year and according to bne IntelliNews report it is still actively hiring staff and growing its business.
Russian authorities had made it clear to RBI, which has around 2,600 corporate customers, 4 million local account holders and 10,000 staff, that they wish it to stay because it enables international payments, one source has told Reuters.
RBI was already active in CEE even before the process of political transition started in the region and the “Iron Curtain” fell: already back in 1986, its first subsidiary bank was founded in Hungary. Therefore, the bank looks back on more than 30 years of experience in the region’s banking business.
