Exclusive: Sources Say Austria’s Raiffeisen Fails Again in Bid to Sell Russian Unit

Raiffeisen Bank International has failed in another attempt to sell its Russian operations, according to two people familiar with the matter, as Moscow seeks to preserve a vital financial link with the West.

Raiffeisen remains the largest foreign lender in Russia, untouched by the sanctions that sidelined local rivals, making it critical for handling trade payments—including gas exports to Europe. Russian authorities opposed the sale in part over concerns that a domestic buyer could expose RBI to Western sanctions, one of the people said.

The Austrian bank has long sought to divest its Russian business to a local buyer, hoping that Moscow would then lift restrictions preventing it from repatriating billions in profits. But growing tensions between Russia and the West have derailed the latest talks.

A Raiffeisen spokesperson confirmed the bank is scaling back operations in Russia and remains in negotiations, but stressed that any sale would require Russian approval. CEO Johann Strobl has made several attempts to push through a deal, including visits to Moscow, the sources said.

Russia’s resistance reflects its interest in maintaining Raiffeisen as a gateway for financial flows with Europe, which still purchases billions of euros’ worth of Russian oil and gas—though far less than before the war. The bank is believed to process payments for the TurkStream pipeline, now Moscow’s only active gas export route to Europe, which supplied about 11.5 bcm in the first eight months of this year.

Raiffeisen’s unique status has allowed it to accumulate some €7 billion in profits stuck in Russia, but any blacklisting by Western authorities could choke off a crucial payments channel. Ukrainian officials have repeatedly criticized the bank for helping sustain Russia’s war economy.

Meanwhile, Moscow has little incentive to approve an exit. As one person familiar with Raiffeisen’s operations in Russia put it: “The authorities want to keep it as a bridge to Europe.”