Story
Raiffeisen Bank Shares Climb After Securing €3.15 Billion Judgment Against Sanctioned Russian Firm
Summary
Raiffeisen Bank International won a default judgment in a Vienna court for approximately €3.15 billion against sanctioned Russian firm Rasperia, boosting its share price. The ruling provides a path for the Austrian lender to claim frozen assets tied to a failed 2023 deal.
Shares in Raiffeisen Bank International (RBI) rose nearly 3% on Wednesday after the lender announced it had won a default judgment in a Vienna court against the EU-sanctioned Russian firm Rasperia. The regional court ordered Rasperia to pay damages of approximately €3.15 billion ($3.60 billion).
The Court's Ruling
According to a statement from Raiffeisen, the judgment was issued by default, and Rasperia now has a four-week window to file an appeal. If no appeal is made, the ruling becomes final, which would allow RBI to petition Austria's financial regulator for the release of Rasperia's frozen assets to satisfy the claim.
These frozen assets include a significant holding in Austrian construction company Strabag. The key assets are:
- 28.5 million shares in Strabag SE
- Dividends accrued on these shares since 2021
- Proceeds from a capital reduction that occurred in March 2024
Background of the Dispute
AdThe legal conflict stems from a complex deal planned in 2023. RBI's Russian subsidiary had intended to acquire Rasperia's stake in Strabag, but the transaction was ultimately abandoned due to concerns it could violate EU sanctions against Russia.
Following the deal's collapse, a Russian court ordered RBI's subsidiary to pay €2 billion in damages to Rasperia. In response, RBI initiated legal action in Austria, seeking roughly €3.15 billion in compensation from Rasperia's frozen Austrian holdings, arguing the Russian ruling had caused it substantial financial damage.
Market Impact and Outlook
The Vienna court's decision was received positively by investors, who see it as a crucial step for RBI in mitigating losses connected to its Russian operations. The ruling provides a potential legal pathway for the bank to recover significant value by taking control of the frozen Strabag shares.
"We have a responsibility to the shareholders of Raiffeisen Bank International to effectively address the damage incurred in Russia," said CEO Michael Hoellerer in a statement. "Today’s judgment is an important step in this process."
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