Raiffeisen drops bid for industry stake linked to Russian tycoon

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-Austria's Raiffeisen Bank International has abandoned a bid to buy a 1.5 billion euro industrial stake linked to a Russian tycoon, following pressure from Washington to scrap the deal.

The plan had come under fire from the U.S. Treasury because Deripaska is sanctioned, exacerbating tensions between Washington and RBI, which is already under scrutiny from U.S. sanctions enforcement agency OFAC, sources told Reuters. Deripaska has denied any current links to Strabag and dismissed Western sanctions against him as misguided and based on false information. U.S. officials, however, suspected he would benefit from the sale, sources have told Reuters.

RBI's Russian business is a money spinner but has tarnished the group's image. Investors welcomed the prospect of the Strabag deal but the bank was forced to drop a planned bond sale when the U.S. objections emerged in a Reuters report.

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