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Raiffeisen gives critical payments lifeline for Russia
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Says critics guilty of 'black and white moral thinking'
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Says could sell Russia operations
(Adds background, detail)
By Alexandra Schwarz-Goerlich and John O'Donnell
VIENNA, March 30 (Reuters) - Raiffeisen Bank
International (RBI) took aim on Thursday at "morally
arrogant" critics of its dealings in Russia, though said it was
considering spinning off its business there anyway amid mounting
pressure.
The Austrian lender is now the most important Western bank
in Russia, offering a lifeline to people and businesses there
seeking to make international payments, but it is under growing
pressure from Western officials and investors to quit.
Chairman Erwin Hameseder accused critics of "black and white
moral thinking" from a "risk free zone of comfort", and said
most Western businesses had not left Russia despite its invasion
of Ukraine, a war he decried as unjustified.
"That is reality," he told the Austrian bank's annual general meeting (AGM). However, CEO Johann Strobl told the meeting the bank would pursue a possible sale or spin-off of its Russian business. He said it would continue to reduce activity in Russia while it pursued those options, but would keep some business there to maintain its bank licence. He was heckled by a member of the audience. "RBI will pursue possible transactions that can lead to a sale or a spin-off of Raiffeisenbank Russia and its deconsolidation from the RBI group," Strobl said. In January, the U.S. sanctions authority launched an inquiry into Raiffeisen over its business related to Russia.
Earlier this month, people familiar with the matter told
Reuters the European Central Bank was pressing RBI to unwind its
highly profitable business in Russia.
The pressure comes after a top U.S. sanctions official
raised concerns about RBI's business in Russia on a visit to
Vienna last month, another person said.
A senior Raiffeisen executive said the bank was in talks
with two potential buyers, including one from Russia, but any
spin off would take four to seven months.
At the AGM, Hameseder singled out "journalistic critics
sitting in the sidelines", saying the bank was helping
diplomatic missions in making payments and pointed to U.S.
lenders, including Bank of America, still active in Russia.
That echoed recent remarks by Austria's foreign minister,
Alexander Schallenberg, who defended the country's
second-biggest bank, saying it was unreasonable to single it out
when so many other Western firms were still in Russia.
RBI has been sharply rebuked by investors after
participating in a Russian scheme to grant loan payment holidays
to troops fighting in Ukraine.
During Austrian President Alexander Van der Bellen's visit
to Kyiv last month, Ukrainian President Volodymyr Zelenskiy
criticised Austrian businesses still operating in Russia,
singling out RBI.
Although the stakes are high, some Austrian officials hope
they can hold out long enough for a negotiated resolution to the
war, allowing for a resumption of normal business with Russia,
people familiar with the matter have told Reuters.
RBI made a net profit of roughly 3.8 billion euros ($4.1
billion) last year, thanks in large part to a
2-billion-euro-plus profit from its Russian business. Russian
savers have lodged more than 20 billion euros with the bank.
($1 = 0.9193 euros)
(Reporting by John O'Donnell; Editing by Miranda Murray and
Mark Potter)
