EU Considers Controversial Move to Allow Raiffeisen to Own Sanctioned Strabag Shares
The EU is contemplating a contentious move as part of its latest Russia sanctions proposal. The plan, drafted in Brussels, aims to permit Raiffeisen, the western bank with the most significant presence in Russia, to acquire sanctioned Strabag shares worth around €2bn. This comes as Raiffeisen grapples to wind down its Russian operations due to regulatory resistance.
The proposal, instigated by Germany, seeks to enforce a Russian court's decision by transferring the assets to Raiffeisen. This move is intended to compensate the bank for a €2bn fine it paid in Russia. However, the potential sale of Raiffeisen's Russian operations could result in western sanctions against the bank and its owner, isolating them from global markets.
The EU is also preparing to lift sanctions on assets linked to Russian oligarch Oleg Deripaska, a move that has sparked concern among some European officials. They worry that this action could legitimize oligarchs' efforts to circumvent EU sanctions and strengthen Russian courts' retaliation against western assets. The original sanctions were imposed on Deripaska due to his alleged support for Russia's military and industrial complex in the Ukraine invasion.
News of the potential sanctions lift led to a significant increase in Raiffeisen's shares, which rose by more than 6.5 per cent. However, ambassadors of several EU member states are expected to raise objections to this move during a meeting to discuss the new sanctions package.
The EU's proposed move to allow Raiffeisen to take ownership of sanctioned Strabag shares and the potential lifting of sanctions on Oleg Deripaska's assets have sparked debate and concern among European officials. As the EU continues to update its sanctions against Russia, the fate of these controversial proposals remains uncertain.
Read also:
- Kazakhstan's National Bank Boosts Currency Sales to $1.4 Trillion in Q4
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
