Raiffeisen’s Russia plan suffers next setback as ECB orders cuts

Raiffeisen Bank International AG’s protracted effort to sell its Russian unit suffered another setback after the European Central Bank indicated it plans to order significant cuts to the business, Report informs via Bloomberg.

The regulator may ask Raiffeisen to reduce its loan volume in Russia by up to 65% by 2026, compared with the third quarter of 2023, the Viennese lender said in a statement, citing a draft requirement from the ECB. The order would also affect the bank’s payments business.

Raiffeisen said such a request would go far beyond its own plans to further reduce the Russian business and may adversely impact options to sell the unit. A spokesperson for the ECB declined to comment.