It was reported that Austria’s Raiffeisen Bank International (RBI) had increased its profit in Russia during the first quarter of the year, a development largely attributed to a stronger rouble and elevated interest rates within the country. This profit increase, which had been disclosed in recently released financial statements, was achieved even as the bank continued efforts to reduce its presence in Russia—an objective that had been pursued under mounting pressure from Western authorities.
The pre-tax profit reported by the lender for its Russian operations amounted to 575 million euros (approximately \$651 million), reflecting a rise of over 25% compared to the same period in the previous year. The significant gain was said to have been driven by interest income on billions of euros deposited at the Russian central bank, as well as by the favorable exchange rate movements of the rouble, which had appreciated approximately 12% against the euro from March 2024 to March 2025.
Despite the strong financial performance in Russia, the bank’s overall strategy remained focused on reducing its exposure in the region. It was noted that Raiffeisen had been under increasing scrutiny from both U.S. and European regulators, who had urged the bank to scale back its operations in Russia following the escalation of the Ukraine conflict. Responding to this pressure, efforts were being made by the bank to divest its Russian business, although such a process was acknowledged to be complex and influenced by ongoing geopolitical tensions.
Johann Strobl, the Chief Executive Officer of Raiffeisen Bank International, was quoted as having stated that discussions with several potential buyers of the Russian subsidiary were continuing. He reiterated that progress was dependent on broader political developments, which would determine whether a viable and timely exit from Russia could be realized. It was also suggested that, should sanctions against Russia be lifted as part of a diplomatic resolution to the war in Ukraine, Raiffeisen might eventually regain access to substantial funds currently trapped within the country.
As of the latest reporting period, the bank held approximately 10.7 billion euros in Russian customer deposits and 4.9 billion euros in outstanding loans. These figures represented an increase since the end of the previous year but were noted to be lower than the levels recorded a year earlier. The bank indicated that the higher valuations reflected exchange rate effects caused by the strengthening of the rouble, rather than any underlying expansion in business operations.
Raiffeisen’s continued profitability in Russia had drawn criticism in recent months, as it had been revealed that the bank had been earning substantial returns on central bank deposits while offering relatively low interest rates to local customers. Furthermore, the bank had remained a key facilitator of cross-border financial transactions involving Russia, despite Western sanctions and broader efforts to isolate the Russian financial system.
The risks associated with such exposure had been highlighted in a recent legal dispute in which nearly 1.9 billion euros were seized from the bank by the Russian central bank. The seizure was said to have been carried out to settle a court-ordered penalty imposed on Raiffeisen in connection with an earlier attempt to access frozen assets. The dispute stemmed from a failed initiative by the bank to unfreeze funds held in Russia and had resulted in a court ruling that imposed over 2 billion euros in damages.
In response to this setback, the bank was reportedly preparing to initiate a claim linked to a stake in the Austrian construction firm Strabag, in an effort to recover part of the financial loss incurred. While it remained uncertain whether these legal avenues would succeed, the situation underscored the increasing difficulties faced by Western firms that continued to maintain a footprint in the Russian market.
Observers noted that the bank’s position remained precarious, caught between strong profitability in a sanctioned economy and growing reputational and regulatory risks in the West. The possibility of unlocking blocked funds continued to hinge on diplomatic developments that remained uncertain and potentially distant.
As Raiffeisen Bank navigated this complex environment, it was being closely watched by regulators and investors alike, with its actions in Russia serving as a broader case study of the challenges facing multinational financial institutions in conflict-affected regions. While profits had risen, the long-term sustainability and ethical dimensions of the bank’s Russian operations were increasingly being questioned.
