Raiffeisen Bank International Faces Pressure Amidst Sanctions Concerns
According to reports, the European Central Bank (ECB) is currently in negotiations with Raiffeisen Bank International, discussing the possibility of the bank exiting its high-revenue business in Russia. This move follows the visit of a top US official on sanctions to Vienna last month, where concerns were expressed about the bank’s activities in Russia. The ECB is now urging Raiffeisen Bank to present a plan of action that will effectively scale back its operations in Russia, which could entail selling or closing down its Russian bank.
Raiffeisen Bank International’s Promised Reduction in Lending and Controlled Exit
Although Raiffeisen Bank International has yet to follow in the footsteps of other Western companies in winding down its activities in Russia, the bank has publicly committed to reducing its lending in the country, accelerating the evaluation of its business, and exploring a “carefully controlled exit” from the market. However, Reuters has reported that the Austrian bank remains one of the most significant Western banks in Russia, accounting for approximately a quarter of all European transfers to the country.
Raiffeisen Bank International Listed as an International Sponsor of the War in Ukraine
The National Anti-Corruption Agency recently revealed that Raiffeisen Bank International has been listed as an international sponsor of the war in Ukraine. The bank is being targeted for not halting its financial activities in Russia after February 24, 2022, and there is reason to believe that it benefitted from the sanctions that caused its competitors to leave the Russian market. In 2022, the bank’s Russian division paid 4.8 times more to the Russian budget than in the entire pre-war year, amounting to €559 million. This move highlights the increasing scrutiny that financial institutions operating in Russia are facing, and raises questions about the future of Raiffeisen Bank International’s operations in the region.
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