Raiffeisen Bank's Russian arm ownership frozen in ban imposed by court

FRANKFURT (Reuters) -A Russian court froze the shares in Raiffeisen Bank International's local arm, the biggest Western bank in Russia said on Thursday, ruling out any sale of the business for now.

RBI had vowed to spin off its Russian business, which provides a payment lifeline to hundreds of companies there, after coming under pressure from international regulators. But more than two years into the war between Russia and Ukraine, little has changed.

The move, the biggest such freeze of Western bank assets in Russia, marks an escalation in the standoff between Moscow and the West.

A spokesperson for the bank said that the Russian court move ruled out a sale of the bank, although he said it would have no impact on the Russian bank's operations or on the efforts demanded by the European Central Bank to reduce it.



"We can still appoint management and give instructions to the Russians but we cannot sell the bank," they said.

RBI will attempt to reverse the court decision it said in the statement.

Source: Investing.com