Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Austrian lender Raiffeisen Bank will continue its Russian operations despite the deteriorating geopolitical situation since the launch of military assault against Ukraine, Financial Times reported citing the lender’s CEO Johann Strobl.

Raiffeisen Bank is among the few international lenders with significant exposure to Russia, which is facing severe sanctions over the Ukraine crisis.

“It is very important that you understand, we are not walking away,” Strobl was quoted by the publication as saying.

Speaking to investors and analysts, Strobl said that Raiffeisen Bank’s Russian business had €354m exposure to financial entities that are facing sanctions and €119m to other sanctioned firms.

The US and its allies have targeted several Russian banks with sanctions including VTB Bank.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Most recently, the European Union has agreed to cut off seven Russian lenders from SWIFT, a global payment messaging system used by banks across the world.

According to European Bank Authority’s data, apart from Raiffeisen Bank, France’s Societe Generale and Italy’s UniCredit are those with exposure to the Russian market.

Raiffeisen Bank’s shares have slumped 40% since Russia launched an operation against Ukraine, Societe Generale’s shares have fallen 26% over the past week and UniCredit’s shares have slumped 23%.

Raiffeisen has been present in Russia since the fall of the Soviet Union and its Russian business accounted for nearly a third of its profits.

As part of the measures, the lender has decided to suspend its per-share dividend of €1.15 as it assesses the impact of the crisis on its operation in Ukraine and Russia.

Strobl noted that in the past eight years, the bank’s Russian operations had a 20% return on equity.

Even “in a worst-case scenario, I think the bank in Russia still could make a profit”, he added.