Raiffeisenbank experiences a significant financial setback stemming from a court ruling in Russia
Raiffeisenbank, the Austrian banking giant, has reported a loss of 240 million euros in the fourth quarter of 2024, marking a significant setback for the institution. This loss is not an isolated incident, as the bank also recorded a loss in the second quarter of the previous 12 months, bringing the total loss for the last 12 months to around 965 million euros.
The primary cause of these losses can be traced back to a legal dispute involving MKAO "Raspereia Trading Limited," a Russian company that co-owns the Austrian construction conglomerate Strabag. In January, the Arbitration Court of the Kaliningrad region satisfied a claim filed by MKAO "Raspereia Trading Limited," leading to Raiffeisenbank recognizing a significant provision of €840 million due to a Russian court awarding €2,044 million to Raspereia.
However, Raiffeisenbank derecognized expected proceeds of €1,204 million from enforcement actions against Raspereia’s assets in Austria in 2025, reflecting uncertainties and delays caused by an anti-suit injunction filed by Raspereia. Despite these accounting impacts, Raiffeisenbank maintains confidence in its legal claims and the enforceability of its rights against Raspereia’s Austrian assets.
The legal conflict and resulting provisions are central to Raiffeisenbank’s substantial losses related to the lawsuit. Additionally, Raiffeisenbank suffered significant exposure tied to the wider collapse of the Signa Group, a major real estate empire with connections to Austrian financial institutions. Raiffeisenbank’s exposure to Signa’s downfall amounted to approximately $830 million, further amplifying its financial strain.
As a result of abandoning a planned acquisition of 27.78% of Strabag's shares for 1.5 billion euros at the end of 2023, MKAO "Raspereia Trading Limited" filed a lawsuit against ten defendants, including Strabag and Raiffeisenbank, seeking around 2 billion euros.
Despite the losses, Raiffeisenbank reported a profit of 425 million euros in the first quarter of 2025. However, this profit was significantly lower than the loss recorded in the fourth quarter of 2024, indicating a continued financial struggle for the bank.
In response to the losses, Raiffeisenbank has reportedly created additional reserves to cover potential losses from the lawsuit in Russia, amounting to over 1.2 billion euros. The losses at Raiffeisenbank are not solely due to the lawsuit in Russia, but are also linked to economic factors and market conditions.
This complex entanglement of international litigation, asset enforcement difficulties, and major exposure to a real estate empire collapse underpins the record losses Raiffeisenbank reported in 2024 and 2025. The bank's losses are a reminder of the challenges that can arise in the global financial market, particularly when dealing with international disputes and economic volatility.
The losses incurred by Raiffeisenbank can be attributed to the finance sector, given their substantial setback due to the legal dispute with MKAO "Raspereia Trading Limited." The bank's financial struggles are also connected to the business implications of the wider collapse of the Signa Group.
