The European Central Bank (ECB) is asking the Austrian Raiffeisen Bank International to reduce its activities in Russia. On this subject informed Reuters, citing five sources familiar with the matter.
According to one of the agency’s interlocutors, the pressure came after the head of the US State Department’s sanctions coordination office, James O’Brien, expressed concerns about Raiffeisenbank and its activities in Russia during negotiations in Vienna in February 2023.
Although the ECB is not asking Raiffeisenbank to leave Russia immediately, it needs an action plan to wind down its activities, two agency sources said. According to one of them, such a plan could include the sale or closure of the Russian branch of the bank.
According to Reuters, Raiffeisenbank does not yet intend to present such a plan. Some Austrian government officials view these measures as unwarranted foreign interference.
A Raiffeisen spokesperson told the agency that the bank was reviewing prospects for its business in Russia, including a “carefully managed exit”. He also noted that the bank has reduced its lending in the country.
The ECB noted that after the outbreak of hostilities in Ukraine, the regulator recommended all “interested organizations” to reduce their activities in Russia.
“We have asked banks to continue to closely monitor activities in Russia and, ideally, to reduce or reduce them as much as possible,” an ECB official said.
In January 2023, the US Treasury’s Office of Foreign Assets Control (OFAC) launched an audit of Raiffeisen Bank International due to its ties to Russia. We talk about the activities of the bank in the Donbass, Ukraine and Syria, as well as the transactions and activity of some customers.
According to Reuters sources, the check was for possible breaches of Western sanctions. Raiffeisen said the investigation was general in nature.
At the beginning of March, Raiffeisenbank temporarily stopped opening accounts for new legal entities, as well as additional foreign currency accounts for existing corporate clients. The bank explained this by a high load due to the influx of applications for opening accounts, the increase in checks and additional requirements of correspondent banks.
