Austria-based Raiffeisen Bank International (RBI), which has once again come under scrutiny in Europe over its operations in Russia, denied allegations that it played a role in trade circumventing sanctions.
Short seller Grizzly Research alleged that RBI was a “key channel” helping more than $1 billion in Russian trade circumvent Western sanctions. The firm also claimed that some of the products involved in part of this trade were used in Russia’s weapons production.
In a statement published on Thursday, Raiffeisen described the Grizzly Research report as misleading and containing factual errors.
RBI’s position in Russia
Raiffeisen’s bank in Russia operates as the largest lender in the country that is not subject to sanctions. As rival banks have been largely excluded from the market because of sanctions, the institution has retained an important role in trade payments, including for natural gas exports to Europe.
The bank said it trusted its compliance systems, which had been audited several times. RBI also said it had been working for years to leave Russia, but its attempts to sell its local operations had been unsuccessful.
Although RBI has scaled back its business in Russia, it has not ended its operations in the country entirely. In 2024, U.S. authorities warned the bank that its access to U.S. dollars could be cut off because of its transactions with Russia. The threat was not later carried out.
Shares fall by as much as 9%
Grizzly Research disclosed that it held a short position in RBI shares. Such a position generates a profit if the share price falls.
Raiffeisen shares fell by as much as 9% after the report was published.
