Russian Court Freezes Raiffeisen Bank Shares Amid Western Tensions

A Russian court has frozen the shares of Raiffeisen Bank International's local arm, preventing any immediate sale. Despite RBI's plans to spin off its Russian business, the freeze marks the largest sanction on Western bank assets in Russia, exacerbating the ongoing Moscow-West standoff.

A Russian court has enacted a freeze on the shares of Raiffeisen Bank International's (RBI) local arm, the largest Western bank operating in Russia, effectively ruling out any sale of the business for the present.

RBI had initially planned to spin off its Russian operations, which serve as a crucial payment conduit for numerous companies, under international regulatory pressure. However, more than two years into the prolonged conflict between Russia and Ukraine, the status quo remains largely unchanged. This recent move, deemed the largest freeze on Western banks' assets in Russia, is a significant escalation in the ongoing tensions between Moscow and the West.

A bank spokesperson stated that while the court's decision precludes selling the Russian branch, it will not impact the bank's operational capacity or the European Central Bank's mandate to scale down its involvement. The bank also plans to challenge the court's ruling.

(With inputs from agencies.)