Austrian bank takes centre stage as EU pushes new sanctions on Russia

The latest effort successful Brussels to slap Moscow with a caller circular of sanctions and unit Vladimir Putin into a ceasefire successful Ukraine has stumbled upon an unexpected actor: Raiffeisen Bank International (RBI).

Austria's second-largest slope and 1 of eastbound Europe's lending powerhouses is connected the lips of diplomats arsenic they contemplate, with heavy scepticism, a contentious program to compensate the corporation, which inactive operates a palmy subsidiary successful Russia contempt a wide exodus of Western businesses from the country.

At the extremity of the 2nd 4th of 2025, Raiffeisenbank Russia had equity of much than €5.3 cardinal and served 3 cardinal customers, according to authoritative data.

But successful January, the subsidiary took a deed erstwhile a Russian tribunal ruled it had to wage much than €2 cardinal successful damages to Rasperia Trading, a Russian concern company.

According to Raiffeisen, which replied to written questions for this story, the quality centres connected Strabag, an Austrian operation concern whose shareholders see Rasperia and Raiffeisen Lower Austria/Vienna, 1 of RBI's halfway shareholders.

Rasperia was owned by billionaire Oleg Deripaska until helium relinquished control successful March 2024. Deripaska himself was among the oligarchs sanctioned by the EU successful the archetypal months of Russia's full-scale penetration of Ukraine owed to his adjacent ties with the Kremlin.

Deripaska is "responsible for, supporting oregon implementing actions oregon policies which undermine oregon endanger the territorial integrity, sovereignty and independency of Ukraine, oregon stableness oregon information successful Ukraine," the EU Council said to warrant the designation.

Two years later, Rasperia itself was added to the blacklist, alongside the companies and individuals that Deripaska employed successful a "complex evasion scheme" to merchantability his stake.

As a effect of the sanctions, the 28.5 cardinal shares that Rasperia had successful Strabag were frozen, preventing the steadfast from receiving dividends from Strabag.

In precocious 2023, Raiffeisen made a move to get Rasperia's shares successful Strabag, but the woody fell isolated aft the US voiced concerns astir the hazard of sanctions circumvention.

Rasperia past launched ineligible enactment demanding reparations for the frozen shares and the nonaccomplishment of dividends. Having failed successful Austria, the steadfast brought a assertion successful a Russian court, which yet ruled successful its favour and ordered the outgo of €2.1 cardinal successful damages.

Since Strabag lacked assets successful Russia that could beryllium seized, the load fell connected Raiffeisenbank Russia, a subsidiary of Raiffeisen, to ft the bill.

Raiffeisen lawyers complained the Russian tribunal had engaged successful intimidation tactics and hampered their quality to contiguous evidence.

Shying distant from a tin of worms?

The ineligible saga has present landed successful Brussels.

Austria is pushing to assistance the sanctions connected Rasperia truthful that the shares tin beryllium transferred to Raiffeisen and assistance offset the €2.1 cardinal write-off.

"RBI has nary concern relationships with Rasperia but seeks compensation for the harm caused by Rasperia successful Austria. Rasperia inactive owns frozen assets successful Austria (in Strabag), which RBI wants to access," a spokesperson for the slope told Euronews.

"It tin prosecute this either done a damages suit successful Austria oregon perchance done the presently discussed 19th sanctions package."

The Austrian Foreign Affairs Ministry declined to remark connected ongoing negotiations.

Crucially, immoderate alteration to the sanctions authorities would necessitate unanimity.

This is wherever Vienna's ambitions person deed a wall: according to diplomats consulted by Euronews, nary different subordinate authorities is consenting to assistance the request, fearing it would unfastened Pandora's container and embolden akin requests successful the future.

The European Commission has adopted an ambivalent presumption to debar antagonising Vienna connected the delicate matter, portion privately admitting the program is controversial.

The archetypal sanctions bundle drafted by the enforcement and presented past month did not code Raiffeisen's ineligible drama. The contented emerged weeks aboriginal arsenic an add-on.

With unanimity looking unattainable, the substance is each but definite to beryllium dropped, unless Vienna pulls the trigger and wields its veto power. Unlike Hungary and Slovakia, Austria does not person a way grounds of single-handedly blocking corporate action.

"We're getting there. There are hardly immoderate important problems oregon disagreements left," said a elder diplomat with cognition of the discussions.

One of the reasons wherefore capitals are truthful reluctant to accede to Vienna's plea is the information that Raiffeisen remains the biggest Western lender inactive doing concern successful Russia, contempt much than 3 and a fractional years of brutal warfare successful Ukraine and countless sanctions.

The Yale School of Management, which tracks foreign firms successful Russia, has identified Raiffeisen arsenic 1 of the companies "digging in" the country.

Raiffeisen has been trying to merchantability its Russian subsidiary since the 2nd fractional of 2022, the spokesperson said.

However, the efforts were analyzable by the request to unafraid support from 5 antithetic regulators, including the European Central Bank (ECB) and Vladimir Putin's office, each with opposing interests. The divestment has not yet materialised.

"If we had reached the extremity of the database (of imaginable buyers), we would accidental so," Raiffeisen CEO Johann Strobl said past week, according to planetary outlets. "We are not giving up."

Strobl expressed his anticipation that a solution to the ineligible quality would beryllium found. If the program successful Brussels fails to instrumentality off, helium explained, the institution volition inquire an Austrian tribunal to merchantability Rasperia's frozen stakes successful Strabag and transportation the proceeds to Raiffeisen.

"We are assured that we would beryllium awarded damages," Strobl said.