Raiffeisen Bank International AG has suffered another blow in Russia after a local court froze shares in its subsidiary, complicating the bank’s ongoing efforts to exit the country. The freeze is tied to legal action by Rasperia Trading, a company linked to billionaire Oleg Deripaska, against construction firm Strabag SE and its Austrian shareholders, Raiffeisen said on Thursday.
While Raiffeisen is not accused of wrongdoing, the shares may be used as collateral in the case. This adds another obstacle to the bank’s two-year effort to sell or spin off its Russian operations, which has been hampered by sanctions and regulatory hurdles.
Rasperia, a major Strabag investor, is seeking nearly €2 billion in damages. A court hearing is set for October 16. Raiffeisen has accumulated €4.58 billion in profits in Russia but is unable to repatriate the funds due to Russian restrictions on dividend payments.
Despite the challenges, Raiffeisen says the court decision will not affect its management of the subsidiary or plans to reduce operations. Other banks, like Societe Generale SA, exited Russia faster, but at significant financial losses.
