Raiffeisen's Russian unit to halt outgoing FX transfers for most customers

MOSCOW, Aug 15 (Reuters) – The Russian subsidiary of Austria’s Raiffeisen Bank International (RBIV.VI), opens new tab said on Thursday that individual clients would no longer be able to make transfers abroad in any currency other than roubles from Sept. 2.

The unit said the new restriction, which would not apply to some large and international businesses, was being imposed due to the group’s efforts to reduce its Russia exposure under pressure from European regulators.

The European Central Bank has told euro zone banks still operating in Russia to cut their ties. ECB Banking Supervision has asked all banks with significant exposure to Russia to speed up their de-risking efforts by setting a clear roadmap for downsizing and exiting the Russian market.

“From Sept. 2, 2024, outgoing cross-border transfers in foreign currency will become unavailable for all the bank’s clients apart from a limited number of corporate clients in the large and international business sphere,” Raiffeisen Bank in Russia said.

“The restriction has been imposed in accordence with RBI Group’s decision in connection with ECB regulation,” the bank said. “The changes do not apply to cross-border payments in roubles.”

RBI said in April that it would be required by the ECB to further decrease its business in Russia by cutting back on loans to customers and paring back international payments from Russia by 2026.

Euro zone banks have more than halved their exposure to Russia since Moscow sent its troops into Ukraine in 2022. Raiffeisen has faced particular criticism as its Russian profits have soared, with Washington even warning RBI that access to the U.S. financial system could be curbed because of its Russia dealings.

Reporting by Elena Fabrichnaya and Alexander Marrow;
Editing by David Evans

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