Raiffeisen Bank Shares Fall After Ukrainian Sanctions Hit Leasing Subsidiary

By Pierre Bertrand

Raiffeisen Bank International AG shares fell Monday after the Ukrainian government added one of the Austrian bank's divisions to a sanctions list.

At 1607 GMT shares had recovered some ground, trading 4.1% lower to EUR16.30 after initially falling 10%, according to FactSet data.

Ukraine at the weekend set out a slew new of sanctions, targeting companies it claims Russia uses to transport military equipment and soldiers.

Raiffeisen Leasing Russia, a wholly-owned subsidiary of Raiffeisenbank Russia, is among the 185 companies and individuals listed under the sanctions.

The sanctions mean assets such as vehicles leased to customers may be blocked and deprived of the right to be used, or disposed, of if found in Ukrainian territory, the bank told Dow Jones Newswires.

The bank said the decision by Ukraine to sanction Raiffeisen Leasing Russia also targets around 30 other Russian leasing companies.

"Since the beginning of the war no new leasing contracts are concluded," the bank said. In December, Raiffeisen Leasing Russia's financed leasing volume amounted to 362 million euros ($393.4 million), it said.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

January 30, 2023 11:22 ET (16:22 GMT)

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