Russia will always remain important for Europe, said the Austrian foreign minister, saying it was an illusion to think otherwise.
Alexander Schallenberg also defended the country’s second-biggest bank, Raiffeisen Bank International, saying it was unreasonable to point the finger at the creditor for its Russian business when so many other Western companies were doing the same.
“To think that there will be no more Russia and that we can decouple in all areas is an illusion,” Schallenberg told Reuters, adding that even if Austria loosens its ties, it “cannot happen overnight.”
“Dostoyevsky and Tchaikovsky are still part of European culture, whether we like it or not. Austria will remain our biggest neighbour. It will remain the second nuclear power in the world”.
Austria, which has bridged East and West and made its capital, Vienna, a magnet for Russian money, is also part of a wider Western alliance that sanctioned Russia after its invasion of Ukraine.
Austria continues to import Russian gas, although it seeks to reduce its imports in the coming years.
Some Austrian officials, however, are hoping for a quick conclusion to the war and a return to more normal relations with Russia, according to people familiar with the situation.
Schallenberg made the comments after the US sanctions authority opened an investigation earlier this year into Raiffeisen over its Russia-related activities, which heightened scrutiny of the Austrian creditor.
Raiffeisen has deep roots in Russia and is one of only two foreign banks on the Russian central bank’s list of 13 systemic institutions, underscoring its importance to the Russian economy, which is grappling with Western sanctions of great magnitude.
A Russian plan to grant loan payment holidays to troops fighting in Ukraine, in which Raiffeisen participated, has also drawn heavy criticism from investors.
Schallenberg said it was up to Austria to enforce the sanctions and pointed the finger at other Western banks doing business in Russia. “Austrian companies must stick to Austrian rules, of which the European Union sanctions are a part.
“Let’s be realistic,” he added. “91% of Western companies are still in Russia and doing what is reasonable: wait, contain, close.
“There are enough US banks, one of which is called Bank of America, operating in Russia,” Schallenberg said. “The list is a ‘who’s who’ of the western banking world”.
A Bank of America spokesperson said, “Our business is focused on complying with all sanctions.
Mr Schallenberg said he preferred the application of existing European sanctions to the introduction of new measures.
“It’s a very blunt weapon,” he said. “We’ve had massive sanctions packages. Let’s give them time.”
