Raiffeisenbank's Russian Operations Face Storm of Challenges
Raiffeisenbank, classified as systemically important by the Central Bank, confronts a barrage of challenges due to its Russian operations. In late July 2025, its Russian subsidiary reported record losses of €861 million following a court ruling, while EU and US sanctions have significantly reduced its activities there.
The bank's Russian unit, despite being the largest unsanctioned Western bank in Russia, is under intense pressure. It generates around €7 billion in profits from Russian operations annually, but these funds remain trapped due to sanctions. Raiffeisenbank is currently exploring options to sell its Russian unit, but regulatory hurdles from Russian authorities pose a significant obstacle. Meanwhile, EU and US authorities are pushing for the bank to wind down its Russian operations entirely.
Raiffeisenbank plays a critical role in facilitating trade payments, including those for Russian gas supplies to Europe. Its potential withdrawal from the market could have substantial implications for both Russia and Europe's energy sector.
Raiffeisenbank's future in Russia remains uncertain. While it seeks to sell its Russian unit, regulatory challenges and international pressure persist. The bank's role in processing trade payments, particularly for Russian gas exports, adds another layer of complexity to the situation.
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