The Russian wing of Raiffeisen Bank International cooperates with companies that supply to the Russian army, Bloomberg reported on Feb. 3.
Raiffeisen is the largest Western bank continuing to operate in Russia. Hesitant to fully withdraw from the Russian market, the bank eventually announced in July 2024 that it would "drastically" reduce its operations in the country.
Over the past year, Raiffeisen in Russia received over 62 million rubles ($620,000) for servicing the Russian chemical company Unichim, that isn't under sanctions, yet provides sanctioned companies with components to produce military equipment, according to Bloomberg.
Raiffeisen Bank cooperated with Unichim by involving accounts in banks such as Sberbank, VTB, Soledarnost ("solidarity" in English), and others under sanctions.
Unichim also supplied acids to the Russian company Ravenstvo ("equality" in English) from under sanctioned. The deliveries were made for a project that specialized in developing and modernizing multiple launch rocket systems and aerial bombs.
Ravenstvo, which mainly develops radar systems, is a division of the sanctioned Russian concern Granit-Electron, a manufacturer of key elements for missile systems. The company cooperated with the Proletarsky Shipyard, part of Russia's largest shipbuilder, the United Shipbuilding Corporation.
Raiffeisen Bank also handled transactions for TotalElectro, a cable supplier to the Smolensk Aviation Plant, Bloomberg reported.
The bank probably has other clients that facilitate supplies to the Russian defense industry, Bloomberg reported.
Earlier in September, a Russian court issued a preliminary ruling that banned the transfer of Raiffeisen shares. "This complicates the sales process" and will "inevitably lead to further delays" in Raiffeisen's exit from Russia, the company said.
Due to limitations imposed by the Russian government, Raiffeisen cannot transfer these funds to its parent company in Austria, which has led to the accumulation of 4.4 billion euros ($4.5 billion) of excess capital in Russia, according to Bloomberg.
In 2023, the Russian branch of Raiffeisen Bank earned over $1 billion in the first three quarters, which accounted for about 50% of the group's total profit. The bank also paid 277 million euros ($284 million) in taxes to Russia over the same period, the media outlet added.
Oksana Ihnatenko
(Updated: )
