Raiffeisen slams 'morally arrogant' critics as eyes Russia spin-off

Raiffeisen Bank International (RBI) (RBIV.VI) took aim on Thursday at "morally arrogant" critics of its dealings in Russia, although said it was considering spinning off its business there anyway amid mounting pressure.

Chairman Erwin Hameseder accused critics of "black and white moral thinking" from a "risk free zone of comfort", and said most Western businesses had not left Russia.

"That is reality," he told the Austrian bank's annual general meeting (AGM).

However, CEO Johann Strobl told the meeting the bank would pursue a possible sale or spin-off of its Russian business.

He said it would continue to reduce activity in Russia while it pursued those options, but would keep some business there to maintain its bank license. He was heckled by a member of the audience.

"RBI will pursue possible transactions that can lead to a sale or a spin-off of Raiffeisenbank Russia and its deconsolidation from the RBI group ... in consultation with the relevant authorities," Strobl said.

Earlier this month, people familiar with the matter told Reuters the European Central Bank was pressing RBI to unwind its highly profitable business in Russia.

The pressure comes after a top US sanctions official raised concerns about RBI's business in Russia on a visit to Vienna last month, another person said.

Hameseder nevertheless singled out "journalistic critics sitting in the sidelines", saying the bank was helping diplomatic missions in making payments and pointed to US lenders still active in Russia.

Reuters