Frozen Path: Raiffeisen Bank's Struggles in Russia Amid Sanctions

A Russian court has frozen Raiffeisen Bank International's local operations, halting potential sales and escalating tensions between Moscow and the West. Despite consistent pressure from U.S. and European officials since Russia's 2022 invasion of Ukraine, Raiffeisen Bank has faced challenges in scaling back its business activities in the region.

A Russian court has frozen Raiffeisen Bank International's local operations, effectively halting any imminent plans for selling the business and intensifying the ongoing standoff between Moscow and Western powers.

Following Russia's 2022 invasion of Ukraine, Western sanctions prompted many banks to sever ties with the country. However, Raiffeisen Bank and Italy's UniCredit remained, facilitating crucial financial links for Russian companies. This attracted scrutiny from U.S. and European officials, who have repeatedly urged the bank to minimize its Russian presence.

Efforts to withdraw have seen multiple setbacks with ECB and U.S. pressures leading to the collapse of deals and operational hurdles. Most recently, a Russian court's decision to freeze shares in Raiffeisen's local operations has rendered any immediate sale impossible, deepening the geopolitical divide.

(With inputs from agencies.)