Representatives of the Austrian banking group Raiffeisen Bank International (RBI) on Thursday called criticism of the bank’s business in Russia “moral arrogance”, although they announced that they would analyze the possible sale of these operations in the context of increased pressure, Reuters and Agerpres reported.

RBI President Erwin Hameseder accused critics of practicing “black and white moral thinking” from a comfortable risk-free position and noted that most Western firms had not yet left Russia.

“This is a reality,” said Erwin Hameseder at the annual general meeting of Raiffeisen shareholders. However, RBI chief executive Johann Strobl told shareholders that the Austrian bank would consider a possible sale or spin-off of its Russian business.

Raiffeisen will continue to scale back its operations in Russia while it evaluates its options, Strobl said, but will retain certain operations to be able to retain its banking license.

“The RBI will analyze possible transactions that could lead to the sale or separation of Raiffeisenbank Russia and its separation from the RBI group… after consultation with the relevant authorities,” Johann Strobl said.

US pressure on Raiffeisen Bank

Reuters revealed earlier this month that the European Central Bank is pressuring Austrian banking group Raiffeisen Bank International to sell its highly profitable Russian business.

The push comes after a senior US official raised questions about Raiffeisen Bank’s operations in Russia during a visit to Vienna last month, another source said on condition of anonymity.

At a general meeting on Thursday, RBI chief Erwin Hameseder warned “critical journalists who are sitting on the sidelines”, saying the Austrian bank was helping diplomatic missions in Russia by making payments, and pointed the finger at banks still active in Russia.

Raiffeisen is deeply rooted in Russia, being one of two foreign banks among 13 systemic institutions on the Russian Central Bank’s list, underscoring its importance to the Russian economy, which faces tough Western sanctions.

American criticism of Raiffeisen Bank’s operations in Russia also angered the Austrian government, with Foreign Minister Alexander Schallenberg coming to the bank’s defense in an intervention on March 22.

Austria says it cannot withdraw from Russia

In his comments, Schallenberg acknowledged that it was unwise to cite Raiffeisen as a single example, saying, like Strobl, that many other Western firms had done the same.

“Austrian companies must comply with Austria’s rules, of which European Union sanctions are a part,” said the Austrian minister, exclaiming: “Let’s be realistic!” “91% of Western companies are still in Russia and doing the right thing: waiting, limiting, sequestering assets,” he added.

Shallenberg said that he is in favor of applying existing European sanctions, and not for the introduction of additional measures.

“This is a very strong weapon,” said the Austrian minister. “We had large-scale sanctions packages. Give them time to work!” he urged in an interview with Reuters.

“To think that Russia will cease to exist and that we can disconnect from it in all spheres is illusory,” he told Reuters reporters, adding that even if Austria loosens its ties with the country, it “cannot happen instantly.”

“Dostoevsky and Tchaikovsky remain part of European culture, whether we like it or not. She (Russia) will continue to be our biggest neighbor. It will remain the second nuclear state in the world,” said the head of Austrian diplomacy.

Schallenberg also served as Chancellor of Austria from October 11 to December 6, 2021, acting after the resignation of Sebastian Kurz amid corruption allegations that marked the latter part of his term.

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