Hungary's largest bank is preparing a plan to withdraw from Russia

OTP Bank, Hungary’s largest bank, has begun exploring possible scenarios for exiting the Russian market. By the end of the year, the financial institution plans to review its strategy for operating in Russia.

OTP has been operating in the Russian market since 2006. After the outbreak of full-scale war, the bank suspended corporate lending, focused on consumer loans, and gradually scaled back its operations.

At the same time, OTP’s Russian division remains among the 20 largest banks in the Russian Federation by total assets. The bank also continues to process international payments in euros for Russian clients. According to Bloomberg, the recipients of these payments include entities affiliated with Gazprom.

OTP’s Russian business is under scrutiny by European regulators due to the bank’s plans to acquire the Baltic bank Luminor. Ahead of a possible exit from Russia, OTP has already withdrawn approximately $880 million in dividends from the country. The bank insists that these funds will not be used to purchase Luminor.

At the same time, selling its Russian “subsidiary” is currently virtually impossible due to restrictions. OTP acknowledges that a complete cessation of operations in Russia could result in losses.

Source: Bloomberg

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