Raiffeisen bank limits services for Russians under regulatory pressure
The Russian division of Austria's Raiffeisen Bank International announced a temporary suspension on opening new brokerage accounts, Reuters reported on Aug. 5.
This decision comes in response to the European regulator's directive to reduce the group's presence in Russia.
"Due to the ECB's directive to RBI Group, Raiffeisen Bank is forced to reduce the volume of operations on the Russian market," Raiffeisen Bank in Russia said.
"We decided to temporarily suspend the opening of new brokerage accounts from July 26, 2024, for retail investors."
Existing accounts will continue to be serviced as usual.
Brokerage accounts provide access to trading platforms for transactions involving financial instruments such as stocks and bonds.
This follows the mid-December 2023 suspension of RBI's status as an international sponsor of the war by Ukraine's National Agency for Corruption Prevention (NAPC).
The suspension is in effect during bilateral consultations with representatives from the European Commission.
Raiffeisen Bank ranked 4th among 63 banks operating in Ukraine, with assets amounting to 196.35 billion UAH ($4 765 366 483) as of Oct. 1, 2023.
The bank's net profit from January to September 2023 was 6.14 billion UAH ($145 878 565), National Bank of Ukraine (NBU) reported.
Raiffeisen Bank has been part of the Austrian banking group RBI since October 2005.
The Raiffeisen group now holds 68.21% of the bank's shares, while the European Bank for Reconstruction and Development owns 30%.
Raiffeisen Bank International (RBI) to begin its exit from the Russian market in the third quarter of 2024, reports indicated on May 3, 2024.
The new plan for winding down operations in Russia was developed in line with European Central Bank (ECB) requirements, RBI group head Johann Strobl said.
The bank will first scale back its retail and corporate lending programs.
Raiffeisen bank aims to reduce its loan issuance by 65% by 2026 compared to the third quarter of 2023, with a similar reduction in international payments.
While the financial institution will continue to issue loans, it will do so selectively, focusing on recovering previously issued loans.
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