Raiffeisen postpones withdrawal from Russia until year end

The Austrian banking group Raiffeisen Bank International (RBI) considers it possible to separate its subsidiary bank in Russia from the parent group no earlier than the end of December, although earlier it was said to be the end of September.

According to Ukrinform, citing the APA, RBI CEO Johann Strobl told analysts about the new deadline on Tuesday.

RBI’s earlier deadline for a possible spin-off of its Russian subsidiary is likely to be postponed. Johann Strobl, the bank's CEO, told analysts on Tuesday afternoon that the spin-off would not be possible until the end of December. In May, he said that the subsidiary could be spun off by the end of September, the report said.

In addition, Strobl said that RBI continues to consider the option of selling its Russian subsidiary.

However, both options are fraught with high bureaucratic hurdles and will take a long time to implement, as the bank's management has repeatedly emphasized in recent months. The sale requires a buyer who is not under sanctions and the approval of Russian President Vladimir Putin, the report reads.

According to Strobl, the sale option is a bit further than a spin-off. He also indicated that there is an interested buyer from outside Russia.

As Ukrinform reported earlier, RBI received EUR 685 million in net profit from its operations in Russia during the first six months of this year.