Austrian RBI’s stock deal with Strabag weakens Russia ties By Reuters

© Reuters. FILE PHOTO: The logo of Raiffeisen Bank International (RBI) is seen at its headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger/File Photo

tom sims

FRANKFURT (Reuters) – Austria’s Raiffeisen Bank International, one of Europe’s most exposed banks to Russia, on Tuesday cut its stake in Austrian construction group Stravag as the two companies sought to limit their ties with Russia. It was announced that it would acquire 28%.

The bank said it would acquire 28.5 million Straback shares through its Russian subsidiary for 1.51 billion euros ($1.66 billion), an unusual move to reduce its stake in the Russian subsidiary.

The Strabag stake is being sold by Russia-based Rasperia Trading Limited, owned by sanctioned Russian businessman Oleg Deripaska. Strabag has also been exploring reducing its 27.8% stake in Deripaska.

“Through this transaction, RBI has further reduced its exposure to Russia,” the RBI said.

Straback said in a statement late Tuesday that Deripaska’s sale would be beneficial to the company, but that a “detailed sanctions review of the transaction” was needed.

The RBI has been studying a spin-off or sale of its domestic business following Russia’s invasion of Ukraine last year, but warned that an exit could take some time and is “very complex”.

At the same time, the European Central Bank (ECB) has been putting pressure on banks to ease their ties with Russia.

The RBI said it would continue to pursue divestitures or spin-offs as alternatives.

Eventually, RBI’s Russian subsidiary announced that it plans to transfer its stake in Strabag to RBI and will hold it as a long-term investment.

Numerous foreign companies have left Russia since the full-scale invasion of Ukraine in February 2022 as Western sanctions have made their stay increasingly difficult, but the Kremlin has also introduced measures to control asset sales.

RBI said the deal is still subject to its own due diligence for sanctions compliance and other regulatory approvals.

(1 dollar = 0.9112 euros)