Anti-Terrorism Unit in Czech Republic Investigates Raiffeisen Bank's Operations in Russia
The National Anti-Terrorism Centre of the Czech Republic has initiated an investigation into the activities of the Austrian Raiffeisen Bank International due to its subsidiary's operations in Russia.
This news has been reported by Czech Television.
A complaint against Raiffeisen Bank was filed with law enforcement authorities by the Association for Citizens' and Entrepreneurs' Rights. Representatives of the organization argue that by continuing its business in Russia, the Austrian company is effectively financing the invasion of Ukraine.
Police spokesperson Ondrej Moravcik confirmed that the anti-terrorism centre is conducting an investigation regarding the banking group. However, he did not disclose further details.
"We are currently dealing with this matter, but as for the progress of this investigation, we cannot provide any additional information," Moravcik stated.
Meanwhile, in the Czech Republic, a group of bank clients has launched a petition urging the bank to withdraw from Russia. "The idea of using the same payment card as, metaphorically speaking, a supplier of military equipment to the Russian army, for instance, is intolerable to us," noted one of the complainants, Ladislav Pelcl.
The Russian branch of the bank reported a nine percent increase in profit in the first half of 2023. This was pointed out by Libor Malecek, who filed a criminal complaint against the group. "How is it possible that we suddenly discover in financial documents that they are contributing hundreds of millions to terrorism, supporting the military machine?" he exclaimed.
However, the bank is defending itself by limiting its activities in Russia. "We are committed to further reducing our business activity in Russia. The group is responsible for preserving the integrity of the bank, which employs over nine thousand individuals," reads the press release from the financial institution.
"Overall, it can be said that our clients understand the situation, even in light of comprehensive analyses published mainly in foreign media," commented Martina Kotasova, spokesperson for Raiffeisen Bank.
As reported by The Gaze, the European Central Bank (ECB) called on European banks operating in Russia to leave the Russian market immediately. The regulator emphasized that continuing operations in Russia poses significant reputational risks.
It was also mentioned that in March, the National Agency on Corruption Prevention (NAZK) included the Austrian Raiffeisen Bank International on the list of international sponsors of the war. This became possible because, despite Russia's full-scale invasion of Ukraine, the bank continued its activities in Russia and officially recognized the so-called "DPR" and "LPR."
Continuing its operations in Russia has yielded substantial dividends. At the end of last year, the bank recorded a profit of 3.6 billion euros (compared to 1.4 billion in 2021), with 2.2 billion euros coming from business in Russia and Belarus (four times more than the previous year).
As previously reported by The Gaze, the Austrian banking group Raiffeisen Bank International (RBI) failed to find a buyer for its Russian bank and began preparations for its divestment.
If such a decision is made, RBI shareholders will receive an additional package of shares: one for RBI excluding Russia, and another for the Russian business. Austria hopes that this move will alleviate reputational pressure on RBI.