ECB puts pressure on Austrian Raiffeisen Bank to withdraw from Russia – media

The European Central Bank is putting pressure on the Austrian Raiffeisen Bank International regarding the bank’s withdrawal from the Russian Federation.

It is reported Reuters citing five people familiar with the matter.

Pressure from the ECB comes after James O’Brien, the US State Department’s top sanctions official, raised concerns about the bank’s business in Russia during a visit to Vienna in February.

While the ECB is not demanding that Raiffeisen leave the country immediately, it does want an action plan to wind down the business. Such a plan may include the sale or closure of a Russian bank. Raiffeisen, however, does not yet plan to present such a plan, the interlocutors said.

A representative of Raiffeisen said that the bank is considering possible actions regarding its business in Russia, “including a carefully managed exit”, and clarified that it has already reduced the volume of lending in the country.

ECB officials are said to be reluctant to pressure Raiffeisen into an immediate sale, fearing the financial blow it could cause amid upheaval in the banking sector in Europe and the US.

The Austrian bank is now the most important western bank in the Russian Federation, because it serves as a lifeline for payments and provides about a quarter of euro transfers to the country. Other foreign banks, such as Italy’s UniCredit, are also still present in Russia.

In January, the US sanctioning body began an investigation into Raiffeisen in connection with its business in the Russian Federation, namely, regarding potential violations of Western sanctions. A representative of the bank said that the financial institution is in the “early stages” of gathering information to respond to the US request.

Some Austrian government officials see such moves by the US and the EU as unjustified foreign interference.

We remind you:

The US sanctioning body has started check regarding Raiffeisen Bank International through its representative office in the Russian Federation, which plays an important role in the economy of the terrorist state.

National Agency for the Prevention of Corruption contributed the Austrian group Raiffeisen Bank International to the list of international sponsors of the war.