Raiffeisen Bank International delays plans to spin off business in Russia

According to Reuters, the CEO of Raiffeisen Bank International (RBI) Johann Strobl said that plans to spin off the bank's large operations in Russia by the end of this year are losing relevance compared to previous forecasts.

Strobl explained that the Austrian bank is considering "a clear, perhaps simpler way... through a sale". According to him, RBI has been analyzing two strategic options for its presence in Russia since the invasion of Ukraine last year.

"In both of these scenarios, we have made significant steps forward," the RBI CEO emphasized.

According to the quarterly financial report released on November 3, RBI called the exit from Russia "very challenging" as local and international rules on selling businesses in Russia are constantly changing.

Notably, Russia accounted for 45% of RBI's profits in the first nine months of this year, but in the third quarter, the bank recorded a 30% year-on-year decline in loans in Russia.

The profits from RBI's Russian operations remain in the local subsidiary due to Western sanctions.

Strobl had previously announced his intention to spin off the Russian business by the end of 2023, but later did not specify a specific timeframe for this process.

At the same time, the European Central Bank continues to put pressure on financial institutions to weaken ties with Russia. Nevertheless, it is known that obtaining approval from local authorities is not an easy task.