Update on RBI’s business activity in Russia

Since the outbreak of the war in Ukraine, RBI has worked intensively to assess all options for the future of Raiffeisenbank in Russia. We have assessed these options in the interests of all of Raiffeisenbank’s stakeholders, up to and including an exit from Raiffeisenbank in Russia. The Group and its stakeholders are in an unprecedented situation, and we recognise the urgency for action which the war has created.

The Group will continue to progress potential transactions which would result in the sale or spin-off of Raiffeisenbank Russia and deconsolidation of Raiffeisenbank Russia from the Group, in full compliance with local and international laws and regulation and in consultation with the relevant competent authorities.

We are committing to further reducing business activity in Russia whilst we continue to progress such potential transactions.

Raiffeisenbank will maintain some banking operations in Russia to meet the conditions of its banking license, and support customers including those impacted by the reduction in business activity in Russia. We have a duty of care to employees in all markets where RBI operates. The RBI Group has a responsibility to preserve the integrity of local operations in Russia, employing over 9,000 people.

Our operating conditions

The market conditions for businesses in Russia are highly complex. The local and international laws and regulations governing the sale of businesses in Russia are subject to constant change.

The RBI Group will continue to progress potential transactions which would result in the sale or spin-off of Raiffeisenbank Russia and deconsolidation of Raiffeisenbank Russia from the Group using four principles: the RBI Group’s governance and compliance, the financial and non-financial value for the RBI Group, the management of spill-over effects to the RBI Group’s network, and the ability to execute any process in an orderly manner.

Our plan to reduce business activity in Russia

RBI has reduced some business activity in Russia and minimised the RBI Group’s cross-border exposure to Russia. The RBI Group and Raiffeisenbank Russia have reduced Raiffeisenbank Russia’s loans to customers and ringfenced Raiffeisenbank Russia’s capital. In all scenarios, including in the event the RBI Group deconsolidated Raiffeisenbank Russia at zero, the Group’s CET1 ratio will remain robust.

Following the RBI Group’s decision to further reduce its business activity in Russia, Raiffeisenbank Russia will continue to reduce loans to customers and reduce the overall volume of foreign currency transactions processed. This will lead to a reduction in the size of the RBI Group’s payments business.

The implications of our plan on our Group 

The net impact of reducing business activity in Russia will be a decline in income generated by Raiffeisenbank Russia.

The RBI Group expects RBI’s customers to be impacted by the decision to further reduce business activity in Russia. The RBI Group will take all action within our possible means to support our customers.