Identifier
Created
Classification
Origin
06VIENNA1190
2006-04-26 06:34:00
UNCLASSIFIED
Embassy Vienna
Cable title:
RAIFFEISEN BANK ANNOUNCES INTENTION TO OPT OUT
how-toVZCZCXRO4801 OO RUEHAG RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVI #1190 1160634 ZNR UUUUU ZZH O 260634Z APR 06 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC IMMEDIATE 3216 INFO RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
UNCLAS VIENNA 001190
SIPDIS
SIPDIS
REFS: A) VIENNA 1089 B) VIENNA 789 C) VIENNA 664 D)
VIENNA 350 E) VIENNA 309 F) VIENNA 42
E.O. 12958: N/A
TAGS: ECON EFIN ENRG EPET PREL PGOV AU
SUBJECT: RAIFFEISEN BANK ANNOUNCES INTENTION TO OPT OUT
OF ROSUKRENERGO (RUE) DEAL
UNCLAS VIENNA 001190
SIPDIS
SIPDIS
REFS: A) VIENNA 1089 B) VIENNA 789 C) VIENNA 664 D)
VIENNA 350 E) VIENNA 309 F) VIENNA 42
E.O. 12958: N/A
TAGS: ECON EFIN ENRG EPET PREL PGOV AU
SUBJECT: RAIFFEISEN BANK ANNOUNCES INTENTION TO OPT OUT
OF ROSUKRENERGO (RUE) DEAL
1. During an April 24 briefing for journalists, Herbert
Stepic, Chairman of the Board of Raiffeisen International
Bank-Holding (RI),a holding company for Raiffeisen
Zentralbank (RZB),announced that RZB's subsidiary
Raiffeisen Investment AG (RIAG) will opt out as a 50%
shareholder of the Ukrainian gas trading company
Rosukrenergo (RUE). RIAG has acted as a trustee for an
unknown beneficial owner since 2004. Stepic said that the
beneficial owners would soon publicly reveal their
identities, at which point RIAG will extricate itself from
the joint venture. (Note: Gazprom controls the other 50% of
the joint venture. End Note.)
2. Stepic said that "the outing" of the beneficial owners
and the establishment of a new government in Ukraine would
create "new rules of the game." In addition, RUE would
phase out interim contracts on gas delivery this summer.
Stepic underscored that Russia and Ukraine had asked
Raiffeisen to participate as a trustee in the RUE joint
venture at the time it was formed in 2004. Stepic noted
that, unfortunately, "we became part of the Ukrainian
election campaign."
3. Stepic stated that he believes relevant authorities in
Ukraine, Russia, and the U.S. already know the name(s) of
the beneficial owner(s). Stepic added that RIAG had also
provided the Austrian Financial Market Authority with
details of the RUE joint venture. Denying any RUE links to
organized crime or money laundering suspect Semyon
Mogilevich, Stepic said that RIAG had agreed to act as
trustee only after a favorable due diligence on the
beneficial owner by the U.S. risk consulting firm Kroll
Associates.
4. Austrian press has recently picked up reports from U.S.
media, particularly an April 21 Wall Street Journal article,
to question Raiffeisen's involvement in the RUE deal and
accusations that Russian organized crime is behind the joint
venture.
MCCAW#
SIPDIS
SIPDIS
REFS: A) VIENNA 1089 B) VIENNA 789 C) VIENNA 664 D)
VIENNA 350 E) VIENNA 309 F) VIENNA 42
E.O. 12958: N/A
TAGS: ECON EFIN ENRG EPET PREL PGOV AU
SUBJECT: RAIFFEISEN BANK ANNOUNCES INTENTION TO OPT OUT
OF ROSUKRENERGO (RUE) DEAL
1. During an April 24 briefing for journalists, Herbert
Stepic, Chairman of the Board of Raiffeisen International
Bank-Holding (RI),a holding company for Raiffeisen
Zentralbank (RZB),announced that RZB's subsidiary
Raiffeisen Investment AG (RIAG) will opt out as a 50%
shareholder of the Ukrainian gas trading company
Rosukrenergo (RUE). RIAG has acted as a trustee for an
unknown beneficial owner since 2004. Stepic said that the
beneficial owners would soon publicly reveal their
identities, at which point RIAG will extricate itself from
the joint venture. (Note: Gazprom controls the other 50% of
the joint venture. End Note.)
2. Stepic said that "the outing" of the beneficial owners
and the establishment of a new government in Ukraine would
create "new rules of the game." In addition, RUE would
phase out interim contracts on gas delivery this summer.
Stepic underscored that Russia and Ukraine had asked
Raiffeisen to participate as a trustee in the RUE joint
venture at the time it was formed in 2004. Stepic noted
that, unfortunately, "we became part of the Ukrainian
election campaign."
3. Stepic stated that he believes relevant authorities in
Ukraine, Russia, and the U.S. already know the name(s) of
the beneficial owner(s). Stepic added that RIAG had also
provided the Austrian Financial Market Authority with
details of the RUE joint venture. Denying any RUE links to
organized crime or money laundering suspect Semyon
Mogilevich, Stepic said that RIAG had agreed to act as
trustee only after a favorable due diligence on the
beneficial owner by the U.S. risk consulting firm Kroll
Associates.
4. Austrian press has recently picked up reports from U.S.
media, particularly an April 21 Wall Street Journal article,
to question Raiffeisen's involvement in the RUE deal and
accusations that Russian organized crime is behind the joint
venture.
MCCAW#