Raiffeisen Bank International AG has announced it will record a provision in its fourth-quarter financial statements following a Russian court ruling that could cost its Russian subsidiary over €2 billion in damages, Bloomberg reports.
The case is related to Rasperia Trading, previously controlled by sanctioned Russian billionaire Oleg Deripaska, against construction firm Strabag SE. While Raiffeisen International’s involvement stems from its largest shareholder’s stake in Strabag, the bank’s Russian unit has become the primary target for damages as other parties in the lawsuit lack assets in Russia.
CEO Johann Strobl contested the ruling, stating, “Raiffeisenbank Russia has been wrongly drawn into the legal dispute between Strabag, its core shareholders, and Rasperia.” The bank plans to appeal the decision and is considering legal action in Austria.
The exact size of the provision remains undisclosed but will account for potential compensation from legal proceedings in Austria. Analysts at Keefe Bruyette & Woods estimate the provision could be at least €400 million.
This development further complicates Raiffeisen’s efforts to exit the Russian market, where it operates the largest foreign-owned bank. Having approximately €4.45 billion in excess capital in its Russian unit as of September’s end, the bank claimed it has been unable to transfer these funds to its parent company due to Russian capital controls.
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