**Raiffeisen Bank Halt Sale of Russian Unit Amid Warming Ties with US**
Raiffeisen Bank International has put its plans to sell its Russian unit on hold, according to a report by the Financial Times (FT). This decision comes as Moscow and Washington are warming up to each other after years of strained relations. The Austrian bank’s Russian branch has been under scrutiny for failing to exit the country’s market despite EU and US sanctions imposed at the start of the full-scale war against Ukraine in 2022.
Raiffeisen initially announced its intention to sell its Russian unit, but then decided to pause this effort in February as US President Donald Trump reached out to Russia diplomatically. The FT cited sources saying that while the situation might still change, the bank’s efforts to sell its Russian branch are ongoing. However, a Russian court ruling from September 2024 has frozen the subsidiaries’ assets, making it difficult for Raiffeisen to finalize the sale.
The warming ties between Moscow and Washington have led to a positive development in the Russian economy, with US officials floating the possibility of economic cooperation as part of an eventual settlement in Ukraine. This rapprochement has also led to a slight improvement in Russia’s economic fortunes, with the ruble outperforming both the dollar and gold.
**Commentary**
The decision by Raiffeisen Bank International to halt its plans to sell its Russian unit is a significant development in the ongoing conflict between Russia and Ukraine. The warming ties between Moscow and Washington have created uncertainty about the future of Western economic sanctions against Russia. While Raiffeisen’s efforts to sell its Russian branch are still ongoing, the bank’s decision to pause this effort suggests that it is taking a cautious approach in light of the changing diplomatic landscape.
The Russian court ruling that froze the subsidiaries’ assets has added another layer of complexity to the situation. It remains to be seen whether Raiffeisen will be able to overcome these obstacles and finalize its plans to sell its Russian unit. In any case, the halt in sale plans is a clear indication that Western banks are rethinking their presence in Russia as the conflict between Russia and Ukraine continues.
**Analysis**
The decision by Raiffeisen Bank International to halt its plans to sell its Russian unit reflects the changing dynamics of the conflict between Russia and Ukraine. As Moscow and Washington engage in diplomatic outreach, Western economic sanctions against Russia may be lifted or relaxed. This could lead to a significant shift in the way Western banks operate in Russia.
Raiffeisen’s decision also underscores the challenges faced by Western banks operating in Russia despite EU and US sanctions. The bank’s Russian branch has been under scrutiny for failing to exit the country’s market, and its efforts to sell this unit have been put on hold amid warming ties between Moscow and Washington.
As tensions between Russia and Ukraine continue to simmer, it remains unclear whether Raiffeisen will be able to finalize its plans to sell its Russian unit. The ongoing conflict has created uncertainty about the future of Western economic sanctions against Russia, and the halt in sale plans by Raiffeisen reflects this uncertainty.
Read More @ kyivindependent.com
