Austria’s Raiffeisen Bank International (RBI) has temporarily halted the sale of its Russian subsidiary as of February, in light of indications that U.S.-Russia relations may be improving, according to a report from the Financial Times citing unnamed insiders.

“Stopping the sale allows us to evaluate the current situation and consider any possible shifts in U.S. policy,” one source mentioned, implying that the bank is observing whether enhanced diplomatic relations could lessen the scrutiny from Western regulators.

On the same day, Christoph Danz, a representative for Raiffeisen Bank International AG, refuted the Financial Times’ article when speaking to the state-controlled news agency RIA Novosti.

Since the onset of Russia’s full-scale invasion of Ukraine in 2022, Raiffeisen has remained the largest and most profitable Western bank operating in Russia, although it has been urged by both U.S. and European officials to minimize its involvement in the Russian market.

In 2023, the bank had disclosed intentions to either sell or divest its Russian operations.

The decision by RBI to pause the sale coincided with U.S. President Donald Trump advocating for a negotiated peace in Ukraine, suggesting a readiness to enhance economic ties with Russia.

RBI’s exit from the Russian market has already been further complicated by legal pressures from the Kremlin.

In September, a court in Russia imposed a freeze on Raiffeisen’s shares in its local subsidiary. Additionally, in January, the bank was hit with a damages penalty of 2 billion euros (approximately $2.2 billion), contributing to a net loss of $926 million in the fourth quarter of 2024—signifying the bank’s first quarterly deficit in almost a decade.

RBI acknowledged to the Financial Times that the court ruling has stalled the sale process.

“At this time, RBI’s shares in Raiffeisen Bank Russia are frozen, making any transaction impossible for now,” the bank remarked in a statement.

The bank plans to challenge the court ruling on April 24.