Russian Court Freezes Raiffeisen Bank Shares, Standoff Escalates

A Russian court froze shares in Raiffeisen Bank International's local arm, escalating tension between Moscow and the West. The freeze prevents the sale of the unit but won't impact operations or European Central Bank's demands to reduce Russian business. RBI's Russian unit, a financial lifeline, faces intense scrutiny.

A Russian court has frozen shares in Raiffeisen Bank International's local arm, escalating the ongoing standoff between Moscow and the West, the bank announced on Thursday.

A spokesperson confirmed that while the freeze prevents a sale, it will not impact the bank's operations or the European Central Bank's demands to curtail its Russian presence.

RBI's stock dropped over 3% on Friday, and the bank is attempting to reverse the court's decision. Amid increasing scrutiny, RBI remains a critical financial lifeline for millions of Russian customers and is under intense pressure from international regulators to sever ties.

(With inputs from agencies.)