Raiffeisen Hopes to Spin Off Troubled Russian Unit by October

Raiffeisen Bank International AG is hoping it can complete a spin off of its Russian subsidiary by the end of the third quarter, deconsolidating its most profitable unit that has been stranded by international sanctions.

“The option where we have a little bit more in our hands is the spinoff,” Chief Executive Officer Johann Strobl told analysts. “What we’re trying to achieve is that a spinoff could be finished at earliest at the end of the third quarter.”

Raiffeisen announced in March it plans to sell or spin off its Russian subsidiary amid growing pressure from regulators and governments. The ...