US authorities are overstepping their bounds, many experts believe. According to Reuters, the US Treasury Department has threatened to cut off Raiffeisen's access to the financial system, thereby curbing its international transactions. The White House cites the bank’s activity in Russia and warns that it is ready to impose restrictions against the Austrian lender in response to its ties with Russian individuals subject to Western sanctions.
The United States is concerned about Raiffeisen Bank International's expansion in Russia. The recent $1.5 billion deal between the financial institution and a sanctioned Russian tycoon has added fuel to the fire. According to US Treasury Deputy Secretary Wally Adeyemo, the bank's expanding activities contradict assurances given by RBI's management to US authorities. Earlier, Raiffeisen claimed that it was ready to wind down its business in Russia. However, its Russian subsidiary is still operating. Against this background, it is not surprising that the largest Western bank has received a warning from Washington about potential restrictions.
According to officials, such activity could prompt the US government to limit the lender’s access to the dollar system as the Biden administration sees it as a threat to national security.
European authorities share this view. The European Parliament also called on Austria's top officials to compel RBI to cease its activities in Russia. The corresponding initiative garnered approval from 37 deputies from different countries.
In early May, the management of the Austrian lender announced its withdrawal from the Russian market in the third quarter of 2024. RBI CEO Johann Strobl said that the banking group would gradually scale back its operations in the country. However, in order to avoid financial pitfalls, the exit from the Russian market would be quite slow, he added.