EU divisions emerge over Austria’s Raiffeisen bank compensation

Representatives from 13 European Union countries voiced opposition last week to Austria’s proposal for Brussels to compensate Raiffeisen Bank following the seizure of its Russian assets, according to an EU diplomat.

Austria is seeking compensation after €2.1 billion of Raiffeisen’s assets in Russia were frozen. The seizure followed a Russian court ruling that the bank must pay oligarch Oleg Deripaska, whose assets are currently frozen in Austria, Caliber.Az reports via Politico.

The European Commission had proposed reimbursing Raiffeisen, but diplomats warned that doing so could set a “Pandora’s box” precedent, potentially complicating EU policy on financial sanctions and cross-border disputes.

The disagreement comes amid broader tensions over EU measures targeting Russia, including proposals to limit travel for Russian diplomats within the bloc and plans to use Russia’s frozen assets to fund a reconstruction loan for Ukraine, the diplomat added.

By Sabina Mammadli