Reuters: ECB demands Raiffeisen Bank exit Russian market

The European Central Bank (ECB) has demanded that the Austrian banking group Raiffeisen Bank close its business in Russia. This was reported Reuters with reference to sources.

According to the interlocutors of the agency, the ECB does not demand to immediately leave the Russian market, but insists on the formation of an action plan to terminate the bank’s activities in Russia. One of them specified that such a plan could include the sale or closure of the Russian division. However, Raiffeisen Bank does not intend to provide such a plan. Austrian officials considered the ECB’s actions unreasonable interference, Reuters notes.

A spokesman for Raiffeisen Bank said the banking group had already cut lending in Russia, was accelerating its business valuation, and was indeed exploring options for a “well-managed exit” from the Russian market. At the moment, Raiffeisen Bank is the most important Western bank in Russia, the agency notes. It handles about a quarter of all euro transfers to the country. At the same time, according to the Financial Times, the “daughter” of Raiffeisen Bank International in Russia serves 40-50% of Russia’s payments with other countries. Also, the Russian division brings the group about half of all profits.

In February, the US Treasury began an investigation into the Austrian group Raiffeisen Bank International in connection with its Russian business. In the same month, Raiffeisen Bank International limited its correspondent network in Russia to five banks. According to Der Standard, Raiffeisen Bank studies the possibility of exchanging with Sberbank of Raiffeisenbank (a subsidiary of Raiffeisen Bank in Russia) for the assets of Sberbank Europe.

Milena Kostereva