The European Bank for Reconstruction and Development (EBRD) is in talks to acquire a minority stake in the Ukrainian arm of Austria’s Raiffeisen Bank International.
EBRD said that the move "will send a strong positive signal to the market during the period of severe political and economic crisis".
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The deal would involve Raiffeisen Bank Aval issuing new equity that would be purchased by EBRD to infuse funds into the bank and give it a 20-25% stake. The deal is slated to completed by September 2015.
Last year, Raiffeisen tried to offload the loss making Ukrainian unit, which was reportedly hit by a loss of EUR82m in the first quarter.
However, the bank was compelled to withdraw from the auction due to Russia’s annexation of part of Ukraine and the continued political stand-off between the former Soviet republic and Moscow.
The division has already closed over 100 branches in 2014, primarily in the east of Ukraine.
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