(MENAFN) Austria's Raiffeisen Bank International (RBI) has announced plans to commence its exit from the Russian market in the third quarter of this year, marking a significant move in response to pressure from the European Union regulator. CEO Johann Strobl revealed the decision on Thursday, signaling a strategic shift for one of the few remaining major Western banks with a significant presence in Russia.
The Vienna-based lender's decision comes in the wake of expectations set forth by the European Central Bank (ECB), which has urged RBI to accelerate its reduction of business activities in Russia. The ECB's proposed requirements, outlined in a draft, include a substantial 65 percent reduction in loans to customers by 2026 and a significant decrease in international payments originating from Russia.
During a conference call, Strobl indicated that RBI anticipates implementing the withdrawal plan in the third quarter. He emphasized the need to carefully assess the impact of these actions and develop a comprehensive strategy accordingly. Despite the ECB's proposals exceeding RBI's initial plans, the bank remains committed to managing the transition effectively, balancing the reduction of business operations with the preservation of asset value.
According to RBI's first-quarter earnings report, the bank has already made notable strides in scaling back its presence in Russia, with customer loans reduced by 58 percent since their peak in 2022, totaling EUR5.8 billion (USD6.2 billion). Notably, Russia and Belarus operations contributed significantly to RBI's overall net income of EUR644 million (USD691 million) during the same period.
Strobl emphasized a cautious approach to the withdrawal, underscoring the bank's commitment to maintaining the value of its Russian assets to facilitate a potential sale in the future. The phased withdrawal reflects RBI's strategic response to evolving regulatory pressures and market dynamics amid geopolitical tensions.
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