Raiffeisenbank (Russia) Overview of the Bank's Development

Raiffeisenbank (Russia) has a long and successful history in the country. Founded in 2006, the bank has grown rapidly to become one of the largest banks in Russia.

The bank's development can be attributed to its strong partnership with Raiffeisen Zentralbank Österreich AG, a leading Austrian bank. This partnership has enabled Raiffeisenbank (Russia) to access international expertise and best practices.

Raiffeisenbank (Russia) has a strong presence in the Russian market, with over 300 branches and a wide range of financial services.

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Raiffeisenbank's history in Russia began in 1996 with the founding of the bank itself. The bank quickly expanded its presence with the opening of a branch in Saint Petersburg in 2001.

By 2006, Raiffeisenbank had acquired 100% of the shares of JSC Impexbank and became the largest bank with foreign capital participation in Russia. This marked a significant milestone for the bank.

In 2018, Raiffeisenbank started to develop its digital presence, allowing customers to be served without physical branches.

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Raiffeisenbank's expansion beyond Austria began in 1986 through Raiffeisen Bank International (RBI).

In 1996, Raiffeisenbank in Russia was founded, marking the start of the bank's presence in the country.

The bank's branch network expanded rapidly, with a branch opening in Saint Petersburg in 2001, followed by Samara, Yekaterinburg, and Novosibirsk in 2005, and Krasnodar in 2006.

By 2006, Raiffeisenbank had acquired 100% of the shares of JSC Impexbank, and the two banks were united under the Raiffeisenbank CJSC brand.

Raiffeisenbank became the largest bank with foreign participation in Russia at that time.

In 2018, the bank started developing its digital presence, allowing customers to be served without physical branches.

By 2021, this digital presence had grown to cover more than 300 cities across Russia.

Raiffeisenbank has a long and storied history, marked by several key milestones.

The first Raiffeisenbank was founded in 1872 in Austria, making it over 150 years old.

In 1928, Raiffeisenbank expanded to Czechoslovakia, solidifying its presence in Central Europe.

The bank's focus on serving local communities has remained consistent throughout its history.

By 1989, Raiffeisenbank had established over 1,500 branches across Europe.

Since then, the bank has continued to grow and evolve, adapting to changing market conditions.

In 2014, Raiffeisenbank merged with Volksbank, further expanding its reach.

Today, Raiffeisenbank operates in 18 countries, with a global presence that reflects its commitment to serving diverse communities.

Raiffeisenbank in Russia is under pressure from the U.S. and the European Central Bank to abandon the country.

RBI has been cutting its loan book and reducing its share in Russia's payment market by half.

Two major buyers are in advanced negotiations to acquire Raiffeisenbank, the Russian subsidiary of Austria's Raiffeisen Bank International (RBI).

Any buyer would need to have sufficient "administrative" resources and Kremlin access to bypass a court-ordered freeze on Raiffeisenbank's shares.

RBI was forced to give up on a deal to acquire a 28% stake in Austrian construction company Strabag due to U.S. pressure.

The decision to abandon the deal led to a legal challenge by a company formerly owned by sanctioned oligarch Oleg Deripaska.

The court ruling has raised questions over whether the lawsuit is being used strategically to lower the price of the RBI sale.

The sale of Raiffeisenbank's Russian operations could be affected by the legal challenges and potential sanctions.

Raiffeisen Bank International (RBI) is currently not prepared to exit the Russian market without any reimbursement for its Russian assets.

The CEO, Johann Strobl, stated that they are considering the option of leaving without compensation, but they are not yet at that stage.

RBI continues to reduce its business operations in Russia, adhering to a strategy of accelerated business reduction.

No specific plan for a complete exit from the Russian market is in place, and they may explore options for partial or full exit in the future.

The bank initially announced plans to scale back its presence in Russia after the full-scale Russian invasion of Ukraine in 2022.

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Raiffeisenbank (Russia) has a strong presence in the market, but there are several competitors vying for market share.

Sberbank, Russia's largest bank, is a significant competitor to Raiffeisenbank. Sberbank has a vast network of over 14,000 branches and a strong online presence.

VTB Bank is another major competitor, with a significant presence in corporate and investment banking. VTB Bank's global reach and expertise in trade finance make it a formidable opponent.

Alfa-Bank and Gazprombank are also notable competitors, offering a range of financial services to individuals and businesses.

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