Raiffeisen Bank International AG (RBI), the Vienna-listed owner of the biggest western bank still operating in Russia, has become a key conduit for evading sanctions in Russia’s war economy while assuring investors, regulators and the public that it was winding down its operations there.
An investigation by Grizzly Research found that it served as a key conduit for circumventing sanctions on over $1 billion worth of Russian trade involving 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.
According to Grizzly, these responses expose a gap between the RBI’s public promises about sanctions and the guidance its staff was giving to potential customers. Customs records report more than $10 million worth of trade with Iran and North Korea bearing the bank code of Raiffeisenbank, suggesting the sanctions issue goes beyond Russia.
A separate verification confirms $49 million in recorded trades involving at least 33 parties while the sanctions were in place, with each recorded record bearing the Raiffeisenbank registration code.
“A consultant who helps Russians move money abroad told us that AO Raiffeisenbank staff instructs clients on how to circumvent sanctions,” said Grizzly./Kapitali.al
