By Alexandra Schwarz-Goerlich
VIENNA (Reuters) -Austria’s Raiffeisen Bank International has yet to find a buyer for its Russian business that would be acceptable to all parties, but is continuing to work through a list of interested candidates, its chief executive said on Wednesday.
Raiffeisen’s unit in Russia is the biggest lender in the country not subject to Western sanctions, making it of critical importance for trade payments with Russia, including gas exports to Europe.
Raiffeisen has been looking to sell a stake in the business to a local buyer in the hope that Moscow would lift a block on it repatriating billions in profits. It is also under U.S. and EU pressure to pare back its Russian activity.
“If we had reached the end of the list (of potential buyers), we would say so,” CEO Johann Strobl told an economic reporters’ club. “We are not giving up,” he added.
In an attempt to shift funds out of Russia, Raiffeisen in 2023 planned for its local unit to buy the stake in Austrian construction firm Strabag belonging to Rasperia Trading, at the time owned by sanctioned Russian tycoon Oleg Deripaska.
Fearing falling foul particularly of U.S. sanctions, Raiffeisen pulled out of the deal. Rasperia later sued and a Russian court ordered Raiffeisen to pay damages of around 2 billion euros ($2.3 billion).
Austria is now pushing for the EU to unfreeze the Strabag stake so it can be used to compensate Raiffeisen for the Russian damages, but diplomats say some member states have expressed misgivings.
“We will see if that receives the necessary political backing in the EU,” Strobl said, adding that Raiffeisen could still go to court in Austria to demand the Strabag stake be sold and the proceeds handed to Raiffeisen.
“We are confident that we would be awarded damages,” Strobl said.
($1 = 0.8600 euros)
(Reporting by Alexandra Schwarz-GoerlichWriting by Francois Murphy,Editing by Louise Heavens, Kirsten Donovan)
