(MENAFN) The European Union is preparing to remove sanctions on assets connected to Russian entrepreneur Oleg Deripaska as a measure to reimburse Austria’s Raiffeisen Bank International (RBI) for financial losses incurred in Russia, according to a report by a news outlet on Friday, which cited EU officials.

Raiffeisen Bank International is one of the few foreign financial institutions still functioning within Russia despite Western sanctions imposed following the escalation of the conflict in Ukraine in 2022.

The Austrian bank facilitates euro and dollar payments and is recognized by Russia’s central bank as one of the 13 systemically important lenders.

Under pressure from EU and US regulators, RBI has been gradually reducing its presence in the Russian market.

A draft version of the EU’s upcoming sanctions package reportedly includes a provision to release approximately €2 billion ($2.1 billion) in shares of Strabag, an Austrian construction firm that was once partially owned by the sanctioned Russian billionaire, sources familiar with the situation told the news outlet.

Deripaska, who founded the aluminum giant Rusal, was blacklisted by the EU in 2022.

The shares would be handed over to Raiffeisen to compensate for a €2 billion damages award that a Russian court mandated the bank to pay in a legal dispute involving a Deripaska-affiliated company.

Previously, RBI and Deripaska attempted to negotiate an asset exchange deal to unfreeze his 24% stake in Strabag, which he holds through his firm Rasperia.

However, the proposed swap of assets in Russia for those in the EU fell apart due to objections from US authorities and concerns that the deal would violate EU sanctions.

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