Austrian Banking Group RBI Delays Exit from Russia; Reason Revealed - Reuters

The Austrian Raiffeisen Bank International (RBI) banking group is delaying its exit from Russia, hoping that the war in Ukraine will soon come to an end, Reuters reports, citing its sources.

According to agency sources, RBI's desire to stay in Russia is also supported by Austrian authorities who have become active in defending the banking group in Europe and the United States.

Furthermore, several Austrian officials told Reuters that although Vienna supports Ukraine, the Austrian authorities do not yet wish to completely sever ties with Russia. They believe that relations with Russia could be restored after the end of the war.

It was previously reported that RBI planned to withdraw its Russian business, Raiffeisenbank, from the group by the autumn of 2023. However, Reuters sources indicate that the group still needs to present its plans to the European Central Bank, which makes a departure from Russia in the coming months unlikely.

Since the large-scale invasion of Ukraine by Russia and the ensuing sanctions, Raiffeisenbank has become one of the key Western banks in Russia, accounting for nearly a quarter of all euro transfers in the country.

In March 2023, Reuters reported that the European Central Bank is seeking for Raiffeisen Bank International to exit the Russian market. Earlier, the U.S. Department of the Treasury, responsible for the implementation of sanctions, had begun an investigation against the Austrian banking group due to its Russian business.