A Grizzly Reasearch investigation that found Raiffeisen Bank had helped Russia dodge stocks sent the lender’s shares on the stock market reeling. Although Raiffeisen categorically denied the Grizzly report’s allegations, this has not been enough to calm the markets.
The Austrian bank’s shares fell 9 percent on Thursday, immediately after the report was published, trading at 60.95 euros, down from 64.85 euros the day before. On Friday, the shares of Raiffeisen Bank recovered easily, being sold at 61.55 euros per share.
An investigation by Grizzly Research found that Raiffeisen served as a key conduit for circumventing sanctions on over $1 billion worth of Russian trade, which included goods covered by EU, US, UK or Swiss import and export restrictions in place at the time.
“Customs records bear the contract registration code /3292/ of AO Raiffeisenbank, linking registered trade contracts with the bank. This includes $106.75 million worth of goods of the types used in Russia’s most powerful armaments,” the investigative report noted.
The cargo includes rifle scopes, components used in Russian battle tanks and machine tools of the kind used to build nuclear warheads and ballistic missiles.
“Our undercover investigation tested Raiffeisenbank’s response to clear references to Russian military clients, drone fundraising and Iran. One manager agreed to a proposed trade deal with Iran, bypassing US export controls. Others said a fund buying war drones could open an account,” Grizzly said.
