Raiffeisen Bank to start downsizing its business in Russia in summer, CEO says

Johann Strobl, CEO of Raiffeisen Bank International (RBI), has stated that in the third quarter of 2024, the banking group will begin to implement the European Central Bank's (ECB) directive for significant downsizing of business operations in Russia.

Source: RBC (Russian Business Consulting), a Russian news outlet; Russian media outlet Kommersant

Quote: "There is an expectation that the implementation will begin in the third quarter, hardly earlier. Currently, we are formulating a plan and analysing what can be done and what will need to be done. Then we will evaluate the impact it will have on the results (of the group – ed.) for the year," said Strobl during a conference call with analysts.

The head of the group also explained that the downsizing of business in Russia involves almost a complete halt to lending - the bank will await repayment of loans already issued and will not issue new ones "with a few exceptions."

At the same time, Strobl noted that the RBI considers selling the Russian business "the fastest and most transparent" way to exit the market. He added that, over the past two years, the group has received expressions of interest from many Russian and foreign partners.

Background: 

• The Austrian government has urged Raiffeisen Bank International to withdraw from a deal involving Oleg Deripaska, fearing a negative reaction from the United States.

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