c AG has decided to delay the planned sale of hybrid securities, valued at €650 million ($705 million), in light of uncertainties surrounding its Russian operations. This move follows a report questioning the feasibility of its scheme to repatriate profits from its Russian arm, leading to a significant downturn in the lender’s shares.
The decision to hold off on the sale of the AT1 securities came after an adverse reaction from the market, as reported by an undisclosed source familiar with the matter. Earlier concerns were sparked by revelations that a complex deal aimed at transferring assets from Raiffeisen’s Russian unit to Vienna might face obstacles due to US objections. This complex transaction, slated to conclude by the end of the month, intended to utilize profits stranded in the Russian subsidiary to acquire shares in an Austrian construction firm formerly owned by sanctioned businessman Oleg Deripaska.
Raiffeisen has emphasized its commitment to compliance with sanctions, stating that it will not engage in any deal that violates sanctions regulations or exposes the bank to such risks. The bank asserts that it has diligently assessed the Russian transaction’s compliance and has informed relevant authorities accordingly.
While awaiting approval from the Russian government, Raiffeisen’s dealings have come under scrutiny, including a recent visit from a senior US sanctions official to discuss the bank’s Russian subsidiary. Despite these challenges, Raiffeisen remains steadfast in navigating the intricacies of international sanctions and regulatory compliance.