Raiffeisenbank Ukraine opens its first branch

Raiffeisenbank Ukraine (RBUA) is the first foreign owned bank in Ukraine to start branching out.

RBUA is a wholly owned subsidiary of one of the largest banking group in Central and Western Europe – Raiffesien Austria with 538 branches and more than 14 000 highly qualified employees. The central institution of the Group and one of the RBUA’s shareholders - Raiffeisen Zentralbank Esterreich Aktiengesellschaft (RZB-Austria), Vienna, during the 1980s initiated and started the implementation of a comprehensive Eastern-European Strategy. The first step was done in 1987 by establishing a subsidiary in Hungary (now Raiffeisenbank Rt.). Currently RZB-Austria operates subsidiary banks in Poland, Slovakia, Czech Republic, Russia, Croatia, Hungary, Bulgaria, Romania, Yugoslavia, Bosnia and Herzegovina.

In 1994 RZB’s opened its representative office in Ukraine. In march 1998 the subsidiary bank – Raiffeisenbank Ukraine – was established. RBUA is a fully licensed commercial bank with the right to offer to its corporate and individual clients a complete range of banking products.

Despite the fact that RBUA`s start of operative banking activity in Ukraine coincided with the Russian crisis in August 1998, the Bank quickly established itself in the market and managed to create a serious customer base currently amounted to more than 600 customers. RBUA does not only deal with leading multinational and Austrian companies but also with large Ukrainian producers, importers and exporters of amongst others oil, agricultural, metallurgical and chemical products.

Today RBUA is in the top ten Ukrainian banks. As on 01.01.2002 its total assets comprised UAH 1 210 Mio. Including loan portfolio – UAH 767 Mio, and capital (including subordinated) UAH 156 Mio.

Yesterday, 25th of January 2002, the opening ceremony of the first RBUA branch took place in Donetsk. The ceremony was attended by the Austrian Ambassador in Ukraine his excellency Michael Meiss, Deputy Chair of Donetsk Region Council Mr. E. Prutnyk, Deputy Donetsk City Head Mr. V. Moiseenko, and representatives of Donetsk and region business elite.

Donetsk Branch was built according to RZB Model Branch Concept with the unique corporate style. Donetsk branch will service not only corporate clients, but also individuals. The latter should be stressed especially as with the starting of branching out RBUA opens a new segment of financial & banking Ukrainian market – operations with individuals and also small & medium enterprises.

International Awards.
In 2001 RZB-Austria was formally recognized as the best foreign bank in Central and Eastern Europe by the Global Finance, and as the Bank of the year in Central and Eastern Europe by The Banker.

Old Raiffeisenbank History in Ukraine.
Raiffeisen cooperative societies, were created in Europe in the middle of the 19th century. These existed in Ukraine also. The first Raiffeisenka (The Ukrainian name of the Raiffeisen cooperative society) was founded in Ivanivtsy village, Poltava region in 1895. These cooperative societies were extremely popular in Central and Western Ukraine. In 1915 there were more than 2,000 Raiffeisen cooperative societies working in Ukraine.
In 1938 563 Raiffeisenkas still existed in Galychyna. Later, when the Soviet regime also reached this part of Ukraine, they were then closed.
Therefore, we can now proudly state that Raiffeisenbank is not only back to Ukraine but also creating its branch network. In 2002 it is planned to open branches in Dnipropetrovsk, Zaporizhia & Mykolaiv.

For further information please contact Ms. Margarita Drobot, (044) 490.05.45
margarita.drobot@rbu-kiev.raiffeisen.at