© Reuters. FILE PHOTO: The emblem of Raiffeisen Financial institution Worldwide (RBI) is seen at its headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger/File photograph
By Tom Sims
FRANKFURT (Reuters) -Raiffeisen Financial institution Worldwide, one of many banks in Europe most uncovered to Russia, plans to take an almost 28% stake in Austrian building group Strabag through a take care of sanctioned Russian businessman Oleg Deripaska.
The deal comes as RBI research an exit of its Russia enterprise and Strabag appears for methods to scale back Deripaska’s stake. If profitable, the transaction might assist to realize these targets.
Russia has tightened exit necessities since 1000’s of Western corporations began leaving quickly after Moscow started what it calls a “special military operation” in Ukraine in February 2022. Executives say navigating these guidelines is turning into tougher.
The transaction is topic to approval of Russian authorities and a evaluation by each corporations for attainable sanctions breaches.
Beneath the deal introduced on Tuesday, the Austrian financial institution is to amass 28.5 million shares in Strabag by its Russian subsidiary for 1.510 billion euros ($1.66 billion), a transfer that would cut back the fairness of Raiffeisen’s Russian subsidiary.
The Strabag stake is being bought by Russia-based Rasperia Buying and selling Restricted, an organization belonging to Deripaska.
“With this transaction, RBI further reduces its exposure to Russia,” RBI mentioned.
Strabag mentioned a divestment by Deripaska could be within the firm’s curiosity however that “a detailed sanctions review of the transaction” was wanted.
A consultant for Deripaska, who’s topic to Western sanctions imposed on account of his perceived Kremlin hyperlinks, had no quick remark.
Russia’s central financial institution and finance ministry, which heads the federal government fee on overseas asset gross sales, didn’t instantly reply to requests for remark.
Shares of RBI had been up 8.3% in Vienna on Wednesday, whereas Strabag gained 7.3%.
RBI had been finding out a spin-off or sale of its enterprise within the nation however had warned that an exit would possibly take a while and was “highly complex”.
RBI mentioned it will proceed to work on a sale, or a spin-off as a fallback.
The European Central Financial institution on the identical time has been maintaining strain on the area’s banks to loosen ties with Russia.
RBI’s Russian subsidiary will in the end switch the Strabag stake to RBI, which it mentioned it will maintain as a long-term funding.
($1 = 0.9112 euros)
