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A Russian court has ordered compensation of more than €2 billion to Austrian bank Raiffeisen Bank International, Reuters reports. This decision was one of the most significant against Western companies that continue to operate in Russia.
Raiffeisen said it plans to appeal the ruling in court and will try to recover some of the money. In response, the bank will be forced to reserve significant amounts in its financial statements for the previous year to cover the losses incurred due to the court ruling.
The dispute stems from the failure of a deal that could have allowed the bank to unblock some of its frozen funds in Russia. According to sources familiar with the situation, Raiffeisen has approximately €6 billion in Russia from international payments, as well as significant amounts on Russian deposits.
With more than 18 million customers in the region from Vienna to Moscow and 44,000 employees, Raiffeisen remains an important financial institution for Austria and Eastern Europe.
