Raiffeisen Bank makes millions on companies that supply Russian army
Pravda Ukraine
Austria’s Raiffeisen Bank International AG is making money from companies that supply products to Putin’s army.
Source: Bloomberg
Details: Last year, Raiffeisen’s Russian unit received more than RUB 62 million (approx. US $620,000) in fees for its services from the Russian chemical company Unikhim.
This firm provided sanctioned companies with components necessary for producing military systems.
It is noted that after the Bloomberg report was published, the bank’s shares fell by 6.4% in Vienna.
Raiffeisen Bank carried out financial transactions for Unikhim using accounts in banks under sanctions, including Sberbank, VTB Bank and Commercial Bank Solidarnost.
In addition, Unikhim supplied acids to the Russian company Ravenstvo, which is also subject to sanctions. The supplies were made for a project related to developing and modernising platforms and ammunition for multiple-launch rocket systems and aerial bombs.
The US Treasury Department reports that Ravenstvo, which develops navigation radar systems, is a division of the sanctioned Russian concern Granit-Electron, which manufactures key elements of missile systems.
It has also worked with the Proletarskyi Shipyard, part of the United Shipbuilding Corporation, Russia’s largest shipbuilder.
Unikhim reports that Raiffeisen Bank also handled transactions for Totalelectro, which supplied cables to the Smolensk Aviation Plant.
It is reported that the bank is likely to have other clients facilitating supplies for the Russian defence industry.
High profits from its operations in Russia helped Raiffeisen Bank earn more than US$1 billion in the first three quarters of 2023, accounting for about 50% of the group’s total profit. At the same time, the bank paid €277 million in taxes to Russia over the same period.
However, due to the capital transfer restrictions imposed by the Russian authorities, Raiffeisen cannot transfer these funds to its parent company in Austria, which has led to the accumulation of €4.4 billion of excess capital in Russia.
Background:
- A Russian court has ordered Austria’s Raiffeisen Bank International (RBI) to pay more than €2 billion (US$2.1 billion) in damages to the Russian co-owner of Strabag, the investment company Raspberia.
- The Russian government will block Raiffeisen Bank International AG and UniCredit SpA’s attempts to sell their local units to any buyer who may be subject to sanctions.
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