**Raiffeisen Bank Cooperates with Companies Supplying Russian Army**
The Russian branch of Raiffeisen Bank International works with companies that supply to the Russian army, according to a report by Bloomberg on February 3.
**Russia’s Largest Western Bank**
Raiffeisen is the largest Western bank still operating in Russia. Despite plans to fully withdraw from the market, the bank announced in July 2024 that it would “drastically” reduce its operations in the country. This decision was made after months of hesitation.
**Banking with Sanctioned Companies**
Over the past year, Raiffeisen Bank in Russia received over 62 million rubles ($620,000) for servicing Unichim, a Russian chemical company not under sanctions. However, Unichim provides components to produce military equipment for sanctioned companies. Raiffeisen cooperated with Unichim by involving accounts in banks such as Sberbank and VTB, which are also under sanctions.
**Supplying the Russian Defense Industry**
Unichim supplied acids to Ravenstvo, a division of Granit-Electron, a manufacturer of key elements for missile systems. The deliveries were made for a project developing multiple launch rocket systems and aerial bombs. Raiffeisen Bank also handled transactions for TotalElectro, a cable supplier to the Smolensk Aviation Plant.
**Complications in Exiting Russia**
A Russian court issued a preliminary ruling banning the transfer of Raiffeisen shares, complicating the sales process and leading to further delays in the bank’s exit from Russia. The bank cannot transfer funds to its parent company in Austria due to limitations imposed by the Russian government. This has led to the accumulation of 4.4 billion euros ($4.5 billion) of excess capital in Russia.
**Profitable Operations**
In 2023, the Russian branch of Raiffeisen Bank earned over $1 billion in the first three quarters, accounting 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.
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