Raiffeisen’s Stalling Russia Strategy Gets ECB Reality Check
- Regulator flags request for steep cuts to Russia unit
- Move could hurt effort to sell the business, Raiffeisen says
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Raiffeisen Bank International AG’s protracted efforts to extract cash from its lucrative Russian unit despite international sanctions against the country suffered another blow as regulators moved to accelerate the wind-down of the business.
In a rare escalation, the European Central Bank indicated it plans to order Raiffeisen to cut its Russian loan book by 65% until 2026, far more than what the Viennese lender had planned. Raiffeisen, which operates the largest foreign-owned bank in Russia, said in a statement Thursday that such a request may adversely impact options to sell the unit.