The end of a European fairy tale: Raiffeisen is reducing its business in Ukraine
Kyiv, February 10 (PolitNavigator, Oleksandr Semenyuta) – Maidan protests promised business growth for European companies, which would improve living standards in Ukraine. In reality, the exact opposite has occurred: Austrian Raiffeisen Bank International intends to reduce its business in Ukraine by 30%. This was announced in a statement by the banking group's press service, according to Ukrainian News.
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The decision to reduce business was caused by problems associated with the devaluation of the hryvnia and the collapse of the economy. In Ukraine, Raiffeisen intends to reduce its assets by 30% from the current 3 billion euros.
At the end of 2013, information allegedly appeared in the media about possible bidders for the purchase of Raiffeisen Bank Aval. Market participants claim that the real reason for the desire to leave the Ukrainian market then was the inability to work in conditions of total corruption. After the Maidan, Raiffeisen decided to backtrack, announcing the suspension of the sale of its Ukrainian subsidiary. Apparently, the group’s leadership hoped that after the change of the political regime, working conditions in the country would change. However, there was no change, and devaluation and corruption destroyed Raiffeisen Bank International's optimistic expectations regarding Ukraine.
The End of a European Fairytale: Raiffeisen Cuts Its Business in Ukraine