Raiffeisen Bank limits currency transfers for Russians: what is changing

On August 15, 2024, the Russian subsidiary of the Austrian Raiffeisen Bank International announced the introduction of new restrictions on international currency transfers. From September 2 this year, individuals in Russia will no longer be able to make transfers in foreign currencies, with the exception of Russian rubles. This decision does not apply to large international companies.

According to information received from Reuters, these restrictions are part of Raiffeisen Bank International's efforts to reduce exposure to Russia under pressure from European regulators. The European Central Bank (ECB) has called on Eurozone banks that continue to operate in Russia to reduce their operations or completely withdraw from the Russian market. The ECB also demanded clear plans to reduce business in Russia.

According to Raiffeisen Bank's statement, the new restrictions on currency transfers are being introduced by the RBI Group in response to the ECB's demands. However, transfers in rubles remain available, allowing customers to continue financial operations within the country.

Earlier, in April 2024, Raiffeisen Bank International announced its intention to significantly reduce its business operations in Russia by 2026. This includes reducing lending and limiting international payments. This decision was a reaction to ECB demands and criticism from Washington regarding possible restrictions on access to the US financial system.

Since the beginning of Russia's military aggression against Ukraine in 2022, Eurozone banks have significantly reduced their presence on the Russian market. Raiffeisen Bank, in particular, has come under fire for growing profits in Russia, leading to a warning from the US about possible sanctions.