Oligarch's gains signal major setback for Raiffeisen bank
The Bank of Russia confiscated 1.87 billion euros (approximately 2.1 billion dollars) from Raiffeisen's Russian account. This action follows a court ruling that ordered the Russian branch of the Austrian bank to pay compensation to Rasperia, a company linked to Oleg Deripaska, an oligarch sanctioned by the West.
The Russian branch of RBI is regarded by Moscow as a key financial institution, providing Russia with access to foreign currencies. The banking group has earned substantial amounts in the Russian market, enabling the regime to conduct transactions abroad. Last year, the Russian branch of Raiffeisen generated over one billion dollars in profits in the first three quarters.
This accounts for nearly half of Raiffeisen Bank's total profits and is twice what it managed to earn in the two years before the invasion. In the first nine months of 2024, Raiffeisen Bank International (RBI) paid a total of 277 million euros (approximately 315 million dollars) in taxes to the Russian state treasury. However, it may now lose everything.
A Russian court ordered the company to pay over 2 billion euros (2.3 billion dollars) in compensation to Rasperia for a failed investment deal. According to Reuters, this is one of the harshest rulings against a Western company still operating in Russia.
In 2023, RBI intended to buy back 24.1% of the frozen shares of the Austrian construction company Strabag from Rasperia, which at the time belonged to the Russian tycoon Oleg Deripaska. However, the group withdrew from the transaction under pressure from Washington. American officials had long suspected that the sanctioned oligarch would benefit from the sale. After the deal fell through, the U.S. Treasury Department imposed sanctions on a network of Russian firms, stating that they were used to conceal ownership. Deripaska has repeatedly denied any connections.
Oligarch triumphs, bank in trouble
Rasperia filed a lawsuit, demanding compensation of approximately 200 billion rubles (about 2.5 billion dollars). In January, the court in Kaliningrad sided with the Russian party. The appeal concluded at the end of April with a rejection. Rasperia approached the Bank of Russia to enforce the judgment - reports Reuters.
Raiffeisenbank lost nearly half of the 4.4 billion euros (approximately 5 billion dollars) held in Russia since the beginning of the war. This is a profit that the bank cannot transfer to Austria due to a capital flow ban imposed by the Russian central bank.
RBI stated in a declaration that, in addition to another appeal, it is also preparing a separate claim against Rasperia, which is to be filed in Austria in the second quarter of this year.
