Raiffeisen sells subsidiary bank in Belarus at loss of €300 million
Raiffeisen withdraws from Belarus (Getty Images)
Raiffeisen Bank International AG (RBI) has signed an agreement to sell its 87.74% stake in Belarus' Priorbank to Soven 1 Holding Limited, concluding negotiations that were announced in February. The deal is subject to regulatory approval and is expected to close by the end of the year, according to the bank's statement.
Upon closure, the transaction is expected to negatively impact the consolidated profit of the RBI Group by approximately 300 million euros, primarily due to the difference between the purchase price and the book value of JSC Priorbank.
The closure of the deal is further expected to have an additional negative impact of around 500 million euros on the consolidated profit of the RBI Group.
"With the completion of this transaction, RBI will have successfully exited the Belarusian market, and thereby reduced its operational complexity in line with its de-risking strategy in Eastern Europe. Priorbank JSC will function entirely independently under its new ownership," the statement reads.
Raiffeisen's cooperation with Moscow
Raiffeisen Bank leads among Western companies paying profit taxes into the Russian budget, having contributed $491 million in 2023.
Raiffeisen has faced particular criticism as its profits in Russia surged, with Washington warning RBI that its access to the US financial system could be restricted due to its cooperation with Russia.
In July, Raiffeisen Bank International announced that it would continue to wind down its large and profitable business in Russia under an agreement with the European Central Bank.
