Austria’s Raiffeisen Bank International has made a deal with Russian businessman Oleg Deripaska to pay him €1.5 billion in Russian currency. This deal allows Deripaska to avoid European Union sanctions that froze his ownership of 28% of Austria’s Strabag, a large construction company in Europe.
Raiffeisen Bank International’s Russian subsidiary will make the payment to Deripaska in exchange for his shares in Strabag. The deal is subject to regulatory approval and compliance with sanctions rules. The subsidiary will transfer Deripaska’s shares to the parent company as a dividend, requiring special approval from the Russian government.
Raiffeisen Bank has been making huge profits in Russia, its most profitable market, despite restrictions on foreign businesses there. The bank has faced pressure to reduce its Russian operations but says it’s difficult without hurting its shareholders. Raiffeisen has explored similar deals with other Russian entities under sanctions, including a failed deal with Sberbank.
