Banking Authority Discussing Possible Transfer of Raiffeisenbank's Ownership
Raiffeisenbank's Russian Exit Struggle Amidst Challenges
Raiffeisenbank persists in its mission to sell its Russian subsidiary, engaged in discussions with multiple potential buyers as of early 2025. However, the selling process has encountered obstacles and even temporary pauses due to geopolitical and legal complications.
The banking group had initially declared intentions to offload its Russian business or spin off the local subsidiary in 2023[1]. Nevertheless, the sale process has been a bumpy ride, with delays and even halts at times.
Pausing for Geopolitical Breaths
In February 2025, Raiffeisen briefly paused the sale, keeping an eye on potential shifts in U.S.-Russia relations and changes in Western regulatory pressures[2][3]. This decision was prompted by signals from U.S. political figures about the possibility of negotiating peace in Ukraine and reviving economic ties with Russia[2][3].
Legal Battles with Russian Authorities
Raiffeisen faced additional challenges when a Russian court froze the bank's shares in its Russian subsidiary in September 2024, effectively blocking any transfer of ownership. To add insult to injury, the bank was hit with a €2 billion damages fine by the Russian court in January 2025. These legal proceedings imposed restrictions on the sale of the Russian unit, complicating the exit process[2][3][5].
Strain on Raiffeisen's Finances
These legal rulings contributed to Raiffeisen reporting a net loss of almost $926 million in Q4 2024, its first in nearly a decade, due to substantial impairment charges related to its Russian operations[2][5].
Despite these setbacks, Raiffeisen maintains that the sale process remains active, albeit temporarily impeded by frozen assets and legal constraints[3][5]. To follow the latest developments, join our Telegram channel @expert_mag and stay informed on the banking world.
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[1] Raiffeisenbank to sell Russian business or spin off local subsidiary, Reuters, March 2023.[2] Raiffeisen pauses Russian asset sale amid U.S.-Russian diplomatic thaw hopes, Financial Times, February 2025.[3] Raiffeisenbank's Russian unit sale stalled by lawsuit, Reuters, April 2025.[4] Raiffeisenbank Russian unit sale frozen due to court case, TASS, September 2024.[5] Raiffeisenbank books first quarterly net loss in a decade due to Russian operations impairment, Reuters, May 2025.
In order to navigate the complicated sales process of its Russian subsidiary, Raiffeisenbank has encountered financial challenges, as demonstrated by the bank's first net loss in nearly a decade, amounting to almost $926 million in Q4 2024, due to substantial impairment charges related to its Russian operations. Meanwhile, the selling process has been temporarily impeded by legal constraints and frozen assets.