Raiffeisen Bank International AG (RBI) is seeking to exit the Russian market, but the process is stalled due โขto complex โgeopolitical and regulatory hurdlesโฃ involving Moscow, Brussels, and Washington.
“I understand that trying to withdraw from russia is a process we canโฃ work on, but โฃtheโ final decision does not belong to us. There are too many โdecision makers involved,” RBI CEOโ Johann Strobl stated during a Bloomberg event in Vienna.
Russia Exit Proves Elusiveโค for Raiffeisen
The Russianโข government maintains strict control over the exit of Western companies, presenting a significant obstacle.
RBI hasโข beenโ attempting to โขsell its Russian โdivision for over three years, but finding a solution acceptable to both Moscow and Western authorities has proven extremely arduous.Russia requires government โapprovals and can impose “exit” fees of up to 50% of the โasset value.
Caught Between East andโค West
The European Central bank (ECB) has urged Raiffeisen to significantly reduce its exposure to Russia, a request the bank says it has been addressing: “We did what we could, especially after the ECB asked us to reduce the operations considerably.”
U.S. regulatory authorities are also applyingโ pressure on Raiffeisen to curtail its financial ties with Russia.
Raiffeisen continuesโ to operate in both Russiaโ and Ukraine, where it is indeed a major foreign creditor and aโ key โfinancier of the agricultural sector. The bank is simultaneously focusing on โฃexpanding its โpresence in more stable โคEastern โฃeuropean markets to improve profitability.