Sanctioning Russia’s War: The Case of Raiffeisen Bank International
Russia’s illegal full-scale invasion of Ukraine in February 2022 has been met with an unprecedented global response by the corporate sector. Over 1,000 companies have exited Russia entirely and many investors have implemented policies to exclude investments in Russia in response to heightened human rights and sanctions-related risks.
Of those companies opting to continue operating in Russia, Austria’s Raiffeisen Bank International (RBI) is one of the largest. Although RBI affirms that it aims to exit Russia, the bank has failed to commit to a full wind-down of its Russian unit. In the interim, RBI’s Russian branch continues to play a “systemically important” role in Russia’s economy, according to the Russian Central Bank, and has generated more than €6bn since the onset of the full-scale invasion. This has prompted serious concerns over the bank’s activities within Russia’s wartime economy.
RBI has previously been the target of international criticism for providing international payment lifelines to hundreds of companies in Russia, supplying billions of euros in foreign currency to the Russian market, and providing significant tax revenues to Russia’s government. US sanctions authorities and the ECB have probed the bank over its Russian operations, and dozens of civil society groups have called upon the bank to exit Russia.
A series of recent findings raise further questions about the reputational, human rights, and legal risks confronting RBI’s operations in Russia. Most notably, BankTrack and B4Ukraine published an investigation into Raiffeisen Capital, RBI’s Russian asset manager, in March, revealing that the asset manager maintains investments in Russian government bonds that have been subject to EU sanctions.
Our webinar will discuss the findings of the investigation in the context of RBI’s continued operations in Russia and explore the potential legal implications of Raiffeisen Capital’s investments. Participants will have the opportunity to discuss and ask questions about the heightened risks confronting companies that remain active in the Russian market.
You can register for this discussion here.
Our speakers:
- Ellie Nichol, B4Ukraine
- Max Hammer, BankTrack
- Nina Prusac, B4Ukraine
- Rebecca DeWinter Schmitt, Investor Alliance for Human Rights (Moderator)
Resources:
Raiffeisen bank subsidiary still invested in sanctioned Russian entities, BankTrack and B4Ukraine
Burning the Bridge - Why Raiffeisen Bank Must Leave Russia, BankTrack and B4Ukraine
Western Banks Sent Billions in Cash to Russia on Eve of Ukraine Invasion, Data Shows, Organized Crime and Corruption Reporting Project and Paper Trail Media
Raiffeisen Bank Clients in Russia Help Supply Putin's War Machine, Bloomberg