Freezing Measures: Raiffeisen Bank's Embargo in Russia
A Russian court's decision to freeze Raiffeisen Bank International's shares in its local unit has significantly hindered the Austrian bank's attempts to exit the Russian market. This move impacts Western efforts to isolate Russia economically, following the Ukraine invasion, and has affected Raiffeisen's stock price and operations.
Raiffeisen Bank International, the largest Western bank operating in Russia, has been hit by a Russian court's decision to freeze its shares in a local subsidiary. This unexpected move saw the bank's stock fall by as much as 7% on Friday.
The freeze complicates Western efforts to pressure Raiffeisen into cutting economic ties with Russia, amidst ongoing international efforts to further isolate the country following its invasion of Ukraine. Despite RBI's commitment to spin off its Russian business to comply with international regulations, the war's continuation delays such plans.
A spokesperson confirmed that the freeze prohibits the sale of the bank's Russian unit but said it does not affect the subsidiary's operations or the ECB-imposed reduction efforts. While RBI's stock recovered slightly, trading at a 5% loss, its valuation remains considerably lower than pre-war levels, highlighting the geopolitical fallout affecting Western financial entities operating in Russia.
(With inputs from agencies.)