The European Union is planning to deliver assets associated with Deripaska to Raiffeisen

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The European Union to lift sanctions on the assets associated with Russian few Oleg Deripaska is preparing to compensate the Austrian International Bank of Riviesen due to the damage it had to pay in Russia, according to European officials.

Provisions of Unfreeze shares of 2 billion euros are included in Strabag, a Austrian construction company that is one day owned by Deripaska, in the latest draft sanctions proposal in Russia in the European Union, according to seven people familiar with the matter.

The officials said that the assets would decrease to Riviesen and compensate the bank with a fine of 2 billion euros, which had to pay after the ruling of the Russian court for a company that is linked to Reribaska.

The sanctions were originally imposed by Deripaska claiming that they provide material support to the Russian military and industrial complex “in the full invasion of Ukraine.

However, some European officials are concerned that the move would give legitimacy to the few efforts to circumvent the European Union sanctions against Russia, and to strengthen Russian courts that lack sanctions through the matter of confiscation of Western origins.

Five officials added that the ambassadors of many member states of the European Union are expected to object to this step, which Austria proposed at the beginning, at Friday meeting to discuss the new sanctions package.

Raiffeisen is the West Bank that has the largest remaining presence in Russia after President Vladimir Putin has widely invaded in 2022. But he was pressured by regulators and foreign governments to leave Russia as many other Western companies did.

RBI tries to overcome operations in Russia. But the Russian organizers are not ready to allow Raiffeisen to leave because it is one of the few remaining points in the country to the Swift Interink, according to the people familiar with the matter.

A possible sale will lead to Western penalties against the bank and its owner, which leads to cutting off from global markets.

The Austrian and Peribaska Bank, previously, failed to arrange complex assets swap to cancel the 24 percent Deripaska stake in Strabag, which was held through his company Rasperia.

Ultimately, the deal collapsed due to fears that it would circumvent the European Union sanctions. The European Union and the United States later imposed another, Dmitry Biloglazov, and many entities that have participated. Deripaska Rasperia, including frozen strabag, sold to Beloglazov.

Since then, Rasperia Raiffeisen has been transferred to the court in Russia, where the Austrian lender was forced to pay 2 billion euros as compensation. The court also ordered the transfer of Strabag shares to Raiffeisen.

Riviesen said in January that the ruling “had no binding effect in Austria and therefore the transfer of shares is not implemented.” He also pointed out that “Rasperia’s Strabag SE shares are subject to the freezing of assets under European Union sanctions that are also prohibited to be transferred.”

The proposal under the discussion in Brussels will now allow Raiffeisen to own the approved shares, in fact to implement the Russian court’s decision.

Officials argue that this gives legitimacy to the Russian courts that punish the assets that have been punished through confiscation, and can encourage the few to follow the same approach.

One of the diplomats said: “It may put a suitable precedent for Russian entities to indirectly recover their frozen money by confiscating the assets of companies affiliated with European Union companies that are still operating in Russia.”

Another said that this “will pay in exchange for the Raiffeisen (taking) private risks” by making a decision to continue working in Russia.

Supporters of this measure argue that it will prevent the entity that has been approved from receiving his money twice-through the compensation that the court ordered, and when the assets are heterogeneous once the penalties are lifted.

Raiffeisen refused to comment. The Austrian Ministry of Foreign Affairs did not respond to the request for suspension.

Deripaska spokesman did not respond to the comment. Rasperia did not respond to the comment.