Raiffeisen reduces relations with Belarusian banks

Banking group representative Raiffeisen Bank International (RBI) confirmed the company’s decision to cut relations with Belarusian banks. He told Austria Presse-Agentur about this.

“Raiffeisen Bank International has decided to significantly reduce correspondent banking relationships in the region, the banks have been informed about this,” – clarified bank representative (TASS quote).

The fact that the Austrian banking group may terminate correspondent relations with all Belarusian credit institutions from July 31 was reported by the local newspaper Nasha Niva, citing sources. The interlocutors of the publication specified that everyone worked through RBI, and such a decision would complicate the life of Belarusian companies.

On May 11, RBI decided to reduce correspondent relations with banks in the CIS countries. “RBI is constantly reviewing its correspondent business and is closely monitoring changes in payment and trade flows. Therefore, we have decided to adjust our risk appetite in the CIS region as well,” he said.

RBI continues to reduce business activity in Russia and its presence in the country. May 5 Austrian credit organization stopped correspondent relations with all Russian banks, except for its “daughter” – “Raiffeisenbank”.

At the end of March, the RBI made a decision sell Russian business or withdraw it from the perimeter of the group. A post on the bank’s website said it was consulting “with the relevant competent authorities” on possible transactions.

Now the Austrian bank is under pressure from regulators due to its presence in Russia. In January, the Office of Foreign Assets Control (OFAC) launched an investigation into the business of the Russian branch of RBI and requested information about the bank’s risks in Russia, as well as in the Donbass, Ukraine and Syria, including transactions and activities of certain clients, wrote Reuters. At the end of March, the European Central Bank (ECB) also demanded to leave the Russian market from RBI.