Raiffeisen Fails to Exit Russian Market Amid Moscow Opposition

Austria's Raiffeisen Bank International (RBI), the largest Western bank still operating in Russia, has repeatedly failed to sell its Russian subsidiary due to opposition from Russian authorities concerned that a local buyer could trigger Western sanctions against the bank. RBI plays a crucial role in facilitating payments for Russian gas exports to Europe, particularly through the TurkStream pipeline, making it a vital financial bridge despite ongoing conflict and sanctions pressures. The bank has accumulated around €7 billion in profits from its Russian operations, but these funds remain frozen as efforts to divest continue without success. Russian authorities aim to preserve economic ties with Europe, which still imports billions of euros worth of Russian oil and gas, even as the EU plans to reduce dependence on Russian energy by 2027. RBI's CEO, Johann Strobl, has made multiple attempts to negotiate a sale in Moscow, but regulatory approvals and geopolitical tensions have stalled progress. The situation remains closely watched by European and global regulators, as it affects sanctions policy and the future of foreign business operations in Russia.