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Russia Tensions Prompt Austrian Bank to Stash Fallout Funds

  • Raiffeisen: 9% of Russia exposure faces higher sanctions risk
  • Russia, Ukraine units are in ‘good shape,’ CEO Strobl says
Updated on

Austria’s Raiffeisen Bank International AG became the first large European lender to say that it’s setting aside money to deal with the potential fallout from tensions related to Russia and the military escalation near Ukraine.

The bank said it made provisions of 25 million euros ($28.2 million) for geopolitical risk in Ukraine and 21 million euros for sanctions in Russia. Overall loan charges rose 11% to 150 million euros in the fourth quarter from a year earlier.