Uncertainty Surrounds Raiffeisen Bank International’s Deal with Strabag
Austria’s Biggest Western Bank in Russia Faces Delays in Stake Purchase
Raiffeisen Bank International, the largest Western bank in Russia, is grappling with uncertainties regarding its deal to acquire a stake in Austria’s Strabag, previously held by a sanctioned Russian tycoon. The bank’s CEO, Johann Strobl, expressed an inability to provide a specific timeline for the transaction during a shareholder meeting.
Complex Deal Raises Concerns Amid Regulatory Scrutiny
Despite Strobl’s assertion that an expedited completion of the deal would be preferable, challenges persist. The acquisition, valued at 1.1 billion euros, has attracted attention from U.S. Treasury officials, who have engaged in discussions with both the bank and Austrian authorities regarding compliance with sanctions laws.
Compliance Verifications Delay Closure of Transaction
RBI recently confirmed that the purchase aligns with sanctions regulations but necessitates thorough compliance checks following the transfer of the stake. The bank had initially announced its intention to acquire the Strabag holding from Rasperia Trading Limited, a company linked to Oleg Deripaska, a sanctioned Russian magnate.
Intense Scrutiny and Legal Assurances
Strobl assured shareholders that RBI has cooperated with various authorities, including those in the United States, addressing concerns related to the transaction. Despite the regulatory hurdles, he reiterated the bank’s belief in the legality and feasibility of the deal.
Continued Efforts Amid Uncertainties
The protracted process underscores the challenges faced by Raiffeisen Bank International in navigating the complexities of the deal. As the bank strives to disentangle its substantial investments in Russia, the unresolved nature of the transaction underscores the intricate web of international regulations and diplomatic considerations at play.
