The European Bank for Reconstruction and Development (EBRD) is in talks to acquire a minority stake in the Ukrainian arm of Austria’s Raiffeisen Bank International.
EBRD said that the move "will send a strong positive signal to the market during the period of severe political and economic crisis".
The deal would involve Raiffeisen Bank Aval issuing new equity that would be purchased by EBRD to infuse funds into the bank and give it a 20-25% stake. The deal is slated to completed by September 2015.
Last year, Raiffeisen tried to offload the loss making Ukrainian unit, which was reportedly hit by a loss of EUR82m in the first quarter.
However, the bank was compelled to withdraw from the auction due to Russia’s annexation of part of Ukraine and the continued political stand-off between the former Soviet republic and Moscow.
The division has already closed over 100 branches in 2014, primarily in the east of Ukraine.