Austrian Raiffeisen Bank accused of aiding Russian war industry profits
Austrian Raiffeisen Bank International AG (RBI) has come under scrutiny after Bloomberg revealed that it has benefited from activities supporting the Russian war industry in Ukraine. It reportedly gained 620,000 dollars in this manner.
Austrian Raiffeisen Bank International AG (RBI) has been accused of profiting from activities that support the Russian war industry.
According to Bloomberg, the bank earned 62 million roubles (620,000 dollars) from services provided to Russian chemical firms that supply products to the defence industry.
Profits and sanctions
In 2024, the Russian branch of Raiffeisen generated over a billion dollars, accounting for nearly half of the bank's total profits. However, due to Russian regulations, the headquarters in Vienna cannot access these funds.
Bloomberg emphasises that the bank implemented monitoring systems to ensure compliance with sanctions.
Key role in Russia
Raiffeisen is one of the few Western banks remaining in Russia after Ukraine's invasion in 2022. The Russian bank branch is considered a key financial institution, which complicates its withdrawal from the market. The decision to leave Russia requires approval from a special commission and Vladimir Putin.
Bloomberg revealed that Raiffeisen handled transactions for Unichim, a company supplying chemicals to the sanctioned defence company Rawienstvo. Unichim also traded with Proletarskij Zavod, part of United Shipbuilding Corp., indicating connections with the Russian navy.
Chinese connections
In the first half of 2024, Raiffeisen provided Unichim with 1.8 million Chinese yuan (250,000 pounds), which suggests an interest in China. Bloomberg notes that Russia, bypassing sanctions, increasingly relies on Chinese raw material suppliers.
Raiffeisen hopes that a ceasefire will relax sanctions, allowing the transfer of profits to the Vienna headquarters. Bloomberg highlights that these funds are currently frozen in Russia, subject to local regulations and sanctions.
