Raiffeisen Bank Helping Russia Circumvent Sanctions, Report Claims
Short-selling firm Grizzly Research alleged the Austrian lender has enabled more than $1 billion of Russian trade to circumvent sanctions.
Raiffeisen Bank International, Austria's largest bank still operating in Russia, is under investigation after a short-selling firm claimed it was instrumental in facilitating over $1 billion in Russian trade to bypass sanctions. Raiffeisen insisted the report by Grizzly Research was inaccurate and contained errors. The bank's Moscow branch is the largest non-sanctioned lender in the nation, crucial for trade, including gas exports to Europe.
Grizzly Research maintained that the bank functioned as a significant channel for circumventing Western sanctions, involving the trade of certain goods used in Russian weapons. Raiffeisen reiterated its commitment to compliance, which had been regularly assessed. The bank has attempted multiple times over the years to sell its Russian operations, but has never fully withdrawn.
In 2024, the U.S. authorities had cautioned Raiffeisen that it might be barred from accessing U.S. dollars due to its dealings with Russia, though no action was taken. Grizzly Research had a short position on Raiffeisen's stock, profiting from any decline. Raiffeisen's shares plummeted by as much as 9%. The bank's Russian operations have been designated as an undesirable organization by Russia's Prosecutor General's Office, posing severe risks to staff.
The Moscow Times, a Russian news outlet, reported these developments, emphasizing their commitment to impartial reporting despite facing authorities' attempts to stifle independent journalism.
Written by urgent.news from The Moscow Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
