Raiffeisen Bank's Russian Exit Costs €2 Billion in Losses and Legal Battles
Raiffeisen Bank International (RBI) faced major financial setbacks in Russia during 2025. Legal disputes and heavy losses reshaped its operations there. The bank's Russian subsidiary, once highly profitable, saw sharp declines in earnings by the end of the year.
RBI's Russian business had thrived in 2024, delivering a net profit of 873 million euros. But by early 2025, the situation shifted dramatically. In April 2024, the bank had already announced plans to sell its Russian arm after pressure from the European Central Bank.
The troubles deepened in January 2025 when the Arbitration Court of the Kaliningrad Region ruled against RBI and construction firm Strabag. The court ordered them to pay around 2 billion euros in a dispute involving MKAO Rasperia Trading Limited. This legal blow weighed heavily on RBI's financial results.
By the second quarter of 2025, Raiffeisenbank reported a record loss of 861 million euros. The bank set aside large reserves to cover potential Russian losses. Despite this, the Russian business remained operationally profitable, earning 406 million euros for the year—though this was nearly half the 2024 figure.
The final quarter of 2025 saw profits in Russia plummet from 319 million euros to just 32 million euros. Overall, RBI's Russian operations ended 2025 with a net loss of 86 million euros. Yet, the bank's withdrawal from Russia proceeded as planned, allowing its non-Russian profits to climb to €1.44 billion. Shareholders benefited from a dividend increase to €1.60 per share.
RBI's exit from Russia concluded by late 2025, despite legal and financial challenges. The bank's non-Russian divisions performed strongly, offsetting losses from its shrinking Russian presence. No evidence suggests RBI's struggles affected other European firms with Russian business ties during this period.
