Raiffeisenbank has closed euro transfers to almost all Russian banks

The largest foreign bank, Raiffeisen, has closed the possibility of sending euros to the vast majority of Russian banks. The credit organization warned customers about this.

Now transfers in euros can only be made to 19 Russian banks, including Avangard, Ak Bars, St. Petersburg, Zenit, Uralsib and other credit organizations. The limitation is related to the position of one of the correspondent banks. If necessary, the bank is not listed, Raiffeisen advises customers to convert euros to rubles or dollars before making a transfer.

It is worth noting that the list of banks to which transfers are allowed includes several credit institutions that have been subject to US blocking sanctions, such as Uralsib and Metallinvestbank. Probably the reason is that transfers are not in dollars, but in euros.

In addition, Raiffeisenbank has completely blocked Russian companies from making transfers in foreign currency to other banks, writes the Telegram channel MarketOverview. The Austrian credit institution also set a limit on foreign business contracts registered with other banks at USD 10 million or EUR.

Earlier, Raiffeisenbank stopped opening accounts for Russian companies. The credit institution explained this decision with a record number of companies’ requests for settlements and cash handling, increased controls and additional requirements of correspondent banks.

The Austrian credit organization also raised the minimum threshold for currency transfers from $5,000 to $10,000 from March 6.

Raiffeisen began imposing restrictions on Russian customers in February after claims by the US Treasury Department. The US regulator is concerned that the Austrian bank not only continues to operate in the Russian market but also handles 40-50% of all cross-border financial transactions in Russia, its chief manager told the Financial Times.

The Office of Foreign Assets Control (OFAC) has launched an investigation into Raiffeisen Bank International over its activities in Russia, Reuters previously wrote.

After that, Raiffeisenbank limited transactions with Russian banks, closing correspondent accounts for many, i.e. the ability to make settlements in euros. A spokesman for Raiffeisen Bank International told Frank RG that the group had reduced its correspondent network to five Russian banks. For the rest, the Austrian credit institution has introduced limits on payments in dollars and euros that it is ready to process.