Austria’s foreign minister said to assume otherwise was crazy.
Alexander Schallenberg defended Raiffeisen Bank International, the country’s second-largest bank, saying it was unfair to single them out for doing business in Russia when so many other Western corporations did.
Schallenberg told Reuters that Austria will decrease ties, but it “can’t happen quickly.”
“Whether we like it or not, European culture includes Dostoyevsky and Tchaikovsky. Our largest neighbor will remain. The world’s second-largest nuclear power will remain.”
Austria, which has marketed itself as a bridge between east and west and made Vienna a magnet for Russian money, is part of a Western alliance that sanctioned Russia following its invasion of Ukraine.
Austria buys Russian gas but wants to cut it in the future.
But, some Austrian officials wish for a rapid end to the war and regular ties with Russia, according to sources.
As the U.S. sanctions body opened an examination into Raiffeisen (RBIV.VI) over its Russia business earlier this year, Schallenberg made his statements.
Raiffeisen is one of two foreign banks on the Russian central bank’s list of 13 systemic institutions, highlighting its importance to Russia’s struggling economy.
Investors also criticized Raiffeisen’s participation in a Russian loan payment vacation program for the Ukrainian military.
Schallenberg said Austria should impose sanctions and blamed Western banks doing business in Russia. “Austrian enterprises must follow Austrian laws, including EU sanctions.”
“Get genuine,” he said. For example, “91% of Western corporations in Russia are doing what is sensible: waiting, confinement, ring fence.”
Schellenberg noted that Russia has several American banks, including Bank of America. “It’s a Western banking who’s who.”
“We comply with all sanctions,” stated a Bank of America representative.
Schallenberg preferred enforcing European sanctions rather than adding more.
He called it a blunt weapon. “Massive sanctions packages. Let them work.”
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