Finance
SanctionsRaiffeisen Bank stopped lending to Russian business
Raiffeisen Bank Aval has suspended lending to Russian companies, informed Vedomosti newspaper.
The renewal of the issuance of the funds will be possible in the beginning of 2015, member of the bank management Oksana Panchenko told the newspaper.
The pause is connected with the fact that the Raiffeisen Bank International AG (RBI) group wants to increase capital by January 1, 2015 and repays the portfolio of its largest daughter, according to a top manager of one of the bank’s counterparties. This is also connected with the expectations of losses from the Ukrainian part of business, moreover, the European Central Bank does not welcome the fact that the group increases the risks in Russia, he said.
RBI believes that the situation in Ukraine will be stabilized after elections, but the economic slowdown and possible increase of the cost of risk influence the Russian operations, according to the recent review of the VTB Capital analysts. The management of the group expects losses in the amount of €500 mn by the end of 2014.
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