The European Union is contemplating the unfreezing of shares valued at 2 billion euros ($2.3 billion) in the Austrian construction firm Strabag, which were once connected to sanctioned Russian billionaire Oleg Deripaska. These shares may be transferred to Raiffeisen Bank International (RBI) as compensation for damages mandated by Russian courts, according to a Financial Times report on Friday that referenced EU officials.
This Austrian proposal is part of the draft for the EU’s 19th sanctions package targeting Russia. EU ambassadors were scheduled to debate the proposal in Brussels on Friday, although “several” member nations are expected to voice their opposition.
Deripaska’s firm, Rasperia, acquired a 24% stake in Strabag in 2007. Following Russia’s invasion of Ukraine in 2022, the shares were subject to EU sanctions and Deripaska sold Rasperia to another Russian entrepreneur, who was subsequently sanctioned by both the EU and the U.S.
In 2024, a Russian court ordered RBI, the largest Western bank still operating in Russia, to compensate Rasperia with 2 billion euros and to assume ownership of the Strabag shares.
While RBI fulfilled the damages payment, it stated that the shares could not be transferred as the Russian court ruling has “no binding effect in Austria,” and the shares remain frozen under EU sanctions.
Proponents view this de facto asset transfer as reimbursement for RBI’s expenses in Russian courts, but some EU officials express concerns that it may legitimize Russian court decisions against Western companies and pave the way for other sanctioned billionaires to reclaim their frozen assets indirectly.
“Proceeding down this route could result in the unfreezing of a significant amount of Russian assets, which I believe is not the intended objective,” an anonymous EU diplomat told Reuters.
RBI, which is pivotal in managing international transactions for Russia, along with Deripaska, previously attempted to negotiate an asset swap, but these efforts fell through due to sanctions-related issues.
Both RBI and Deripaska’s spokesperson opted not to comment on the FT article. Rasperia and Austria’s foreign ministry did not respond to requests from FT for further information.
RBI first declared intentions to exit Russia shortly after the onset of Moscow’s full-scale invasion of Ukraine in 2022. However, later that year, President Vladimir Putin prohibited divestitures in banks by investors from “unfriendly” nations without official consent.
Earlier this week, Reuters reported that Russian authorities impeded the sale of RBI to a domestic buyer due to concerns that the transfer of ownership might provoke Western sanctions against the bank.
Additionally, it was mentioned that Strabag has withdrawn its claim against Rasperia and RBI.
