Austria is seeking a sanctions waiver to unfreeze Oleg Deripaska-linked assets, aiming to compensate Raiffeisen Bank for losses in Russia. This proposal has sparked a rift within the EU, with opposition from Baltic, Nordic, and Central European states, including Poland and the Czech Republic, warning it could set a dangerous precedent.
The issue centers on Raiffeisen Bank’s attempt to compensate for losses under a Russian court ruling. Raiffeisen Bank International (RBI) remains one of the few foreign lenders operating in Russia, despite Western sanctions imposed since the Ukraine conflict in 2022. The Austrian proposal seeks to insert a derogation into existing sanctions, allowing national authorities to release frozen funds linked to three blacklisted companies and two Russian businessmen, including Deripaska and Dmitry Beloglazov.
The plan would release approximately €2 billion in Strabag shares, an Austrian construction firm once part-owned by Deripaska, which were frozen in 2022. The EU Council claims that Deripaska and Beloglazov used companies like Iliadis, Rasperia, and Titul to bypass the freeze. Following the collapse of an earlier asset swap under US and EU pressure, RBI’s new solution involves acquiring Deripaska’s frozen 24% Strabag stake, effectively enforcing the Russian court’s ruling to let Raiffeisen claim the shares.
Austria’s proposal requires unanimous approval from all EU members, highlighting the complexity of achieving consensus on such matters. An Austrian lawyer representing Russian businessmen argued that Austria is ‘merely acting rationally in trying to protect its systemic banking industry.’ Meanwhile, Deripaska has criticized Western sanctions, calling them outdated and counterproductive, arguing they have failed to weaken Russia and risk harming the global economy.