Czechia has opened an investigation into Raiffeisen Bank International (RBI) over its business activities in Russia, following a criminal complaint filed by the Association for the Rights of Citizens and Entrepreneurs. The group claims that by conducting business in Russia, the RBI is financing Moscow’s aggression against Ukraine. In 2022, Raiffeisen’s Russia-based companies paid up to $720 million in taxes to the Russian state budget.

The bank’s gains in the Russian Federation grew by 9% in the first half of 2023. As Austria’s second-largest bank lender, Raiffeisen plays a significant role in Russia’s financial system and is one of only two foreign banks classified as „systemically important” by the Russian central bank. Despite the invasion of Ukraine in February 2022, Raiffeisen continues to operate in Russia. The U.S. Office of Foreign Assets Control (OFAC) is investigating Raiffeisen for its activities in Russia.

The European Central Bank (ECB) urged Raiffeisen to devise an exit strategy for selling or shutting down its Russia branch. The bank is reducing its business activity in Russia, minimising cross-border exposure, and exploring ways to sell or spin off its Russian branch.

The National Agency on Corruption Prevention of Ukraine previously added the Austrian banking group to its special list of international sponsors of war.

The Ukrainians argue that Raiffeisen took advantage of withdrawal of its competitors from the Russian market and now pays nearly 5 times more into the Russian state budget in taxes than it did before the war.

Another issue is that the bank officially acknowledges the so-called ‘DPR’ and ‘LPR’ separatist republics through its Russian representative office, but it also offers Russian soldiers favorable lending terms.

These actions have drawn ire form Ukraine’s National Agency on Corruption Prevention (NACP) which argues that the Austrian banks continued operations in Russia indicate its direct support and sponsorship of Russian state terrorism.