Raiffeisen Bank under scrutiny
The media reports that the sharp decline in Raiffeisen Bank’s stocks is related to an American investigation into its connections with Russia. The bank is being scrutinized by officials dealing with sanctions. Its representatives claim that it is ready to cooperate and assure compliance with the applicable restrictions.
Raiffeisen Bank
Raiffeisen was founded in Austria in 1886. It is currently an international bank operating in many countries in Europe and Asia. In Poland, it has been operating since 1991 and currently has several hundred branches throughout the country. It offers a wide range of banking products and services, such as personal and business accounts, loans, deposits, credit and debit cards, insurance, investments, and services for businesses.
Russian subsidiary
Since March 2022, RBI has been analyzing strategic options for its Russian subsidiary, including exiting this market, but Russian regulations restricting asset sales and the reluctance of Western companies to invest in this country have narrowed its options. Nonetheless, Raiffeisen continues to operate in Russia and claims to comply with applicable sanctions.
BNP Paribas Exane analysts lowered their recommendation for Raiffeisen’s stocks from “overweight” to “neutral” due to potential risk, while Erste Group analysts maintained their positive outlook on Raiffeisen’s stocks, arguing that OFAC investigations are common and do not necessarily lead to any sanctions.
Economic Intelligence – how to check if a foreign entity is not associated with Russia?
Polish entrepreneurs, therefore, have legitimate concerns about the severe consequences of cooperation with Russian entities. How to protect against them, how to check whether a contractor is not associated with Russia? In the previous article on the Verificators blog, we discussed the topic: How to check if a foreign entity is not associated with Russia? Such cooperation could severely damage the company’s image in the face of international opposition to Russian military aggression in Ukraine and ultimately affect the financial condition of the enterprise.