The Russian subsidiary of Austria’s Raiffeisen Bank International (RBI) will cease processing outgoing euro transfers for private clients starting early September, as reported by various media.
The move was first highlighted by the specialist blog MarketOverview on Thursday morning and subsequently covered by the Russian business newspaper RBK.
RBI had announced this measure at the end of July during the presentation of its financial results for the first half of 2024, aiming to “minimise risk in Russia.”
“From September 2, Raiffeisen Bank (Russia) will no longer process outgoing transfers in foreign currencies for private clients of all types,” MarketOverview reported.
However, there has been no official confirmation from Raiffeisen Russia itself.
RBI has faced mounting pressure from the EU and US over its dealings in Russia as the Kremlin continues its invasion of Ukraine. In May, the U.S. Treasury warned that RBI’s access to the U.S. financial system could be restricted.
The decision to halt euro transfers for private clients in Russia is likely to impact not only outgoing euro transfers but also transactions in Chinese yuan, Kazakh tenge and Armenian dram. Outgoing dollar transfers had already been suspended since June.
Since the spring of 2023, Raiffeisen Russia has made it increasingly difficult for private clients to make transfers to Western countries, including gradually increasing the minimum transfer amount for euro transactions abroad to €20,000.
Nonetheless, corporate clients are expected to maintain their interest in the bank’s services. According to RBI’s recent half-year financial presentation, “large and internationally active companies” will still be able to process transfers abroad via Raiffeisen Russia, albeit with prior approval. However, companies in sectors like electrical equipment, cars, oil, and timber have been excluded, with transfers in these industries halted since 2023.