RBI says to pursue $3.6 billion in damages from Russia's Rasperia in Austria
Raiffeisen Bank International Initiates Legal Action Over Frozen Assets
Background of the Dispute
VIENNA, July 23 (Reuters) - Raiffeisen Bank International (RBI) said on Thursday that it would take legal action in pursuit of around €3.15 billion ($3.58 billion) in damages from EU-sanctioned Russian firm Rasperia in Austria.
RBI's Russian subsidiary AO Raiffeisenbank will join the proceedings as second claimant targeting frozen assets in Austria, the Austrian bank said in a statement.
Origin of the Asset Freeze
The dispute arose after Rasperia's stake in Austrian builder Strabag was frozen under EU sanctions. A Russian court later ordered RBI's Russian subsidiary to pay about €2.4 billion to the company, prompting the Austrian bank to seek compensation through Rasperia's frozen assets in Austria.
Legal Restrictions and Allowances
A Russian court had previously issued an injunction largely prohibiting legal action outside Russia against Rasperia, which did not immediately respond to a request for comment.
Under that ruling, however, RBI and AO Raiffeisenbank are permitted to pursue claims in Austria without facing court-imposed penalties of up to €2.85 billion, the bank said.
Implications and Expected Outcomes
Risk Assessment and Lawsuit Filing
As this significantly reduces the risk, a lawsuit would now be filed, RBI said, adding that its management board considers a positive outcome in the proceedings "highly likely" and expects proceeds from enforcement within six to 12 months.
Details of the Frozen Assets
The frozen assets subject to European Union sanctions consist of 28.5 million Strabag shares, including retained dividends and cash distributions.
Strabag's Response
Financial Impact on Strabag
Strabag said in a statement that "any financial consequences of a breach of this order would arise only in Russia".
Write-off of Russian Assets
"As all of Strabag’s assets in Russia were already written off in the balance sheet in 2022, even the imposition of a penalty order in Russia would have no immediate impact on Strabag’s results," the Austrian construction group added.
Additional Information
($1 = 0.8790 euros)
(Reporting by Alexandra Schwarz-Goerlich, writing by Miranda Murray, editing by Kirsti Knolle and Alexander Smith)
