Raiffeisen shares plummeted following allegations of circumventing Russian sanctions
Shares of Austria’s Raiffeisen Bank International (RBI) fell more than 8% during Thursday’s trading session following the release of a report by the investment fund Grizzly Research. In the report, the fund accused the bank’s Russian division of participating in transactions that may have helped circumvent Western sanctions. RBI itself stated that some of the claims in the report are untrue and misleading.
“Investors know that RBI continues to operate in Russia, but they have never been informed of the true risks and the bank’s dependence on Russian business,” the Grizzly Research report states.
Based on the results of its own investigation, Grizzly Research claimed that RBI had become one of the key channels for circumventing Western sanctions, while publicly declaring its intention to scale back its operations in Russia.
The firm claims that the bank’s Russian subsidiary was involved in trade transactions totaling $1.191 billion for goods subject to import or export restrictions imposed by the EU, the U.S., the U.K., or Switzerland.
As Grizzly Research notes, Raiffeisenbank JSC’s registration number with the Bank of Russia—3292—was found in customs documents.
According to the fund, the specified amount includes $106.75 million worth of goods that, in its assessment, are used in the production of Russian weapons.
Among these, the fund lists rifle scopes, tank components, as well as machine tools for the production of nuclear warheads and ballistic missiles.
Representatives of the fund, they say, also contacted bank managers to discuss potential military supplies.
“One of the managers agreed to the proposed scheme for purchasing drones from Iran, which allows for circumventing U.S. export controls. Several others stated that a fund involved in purchasing drones for the war could open an account [at the bank],” writes Grizzly Research.
The report also alleges that employees of Raiffeisenbank JSC may have advised clients on how to circumvent sanctions.
Separately, the fund cites customs documents that include the bank’s registration number. According to the fund, these documents reflect trade transactions with Iran and North Korea totaling more than $10 million.
Grizzly Research cited these instances as evidence of a possible “discrepancy between Raiffeisenbank’s public assurances regarding sanctions compliance and the advice its employees gave to potential clients.”
The Austrian bank stated that during its initial analysis of the Grizzly Research report, it identified a number of claims that are untrue and misleading.
“We are confident in the reliability of our systems, which ensure regulatory compliance and have undergone multiple audits,” reads a statement from RBI, as quoted by Reuters.
Thus, the allegations regarding the bank’s involvement in sanctions-evasion operations are currently the subject of a dispute between Grizzly Research and RBI itself.
Raiffeisen remains one of the last major Western banks still operating in Russia.
RBI has repeatedly stated its intention to wind down its Russian business. At the same time, the bank has noted that Russian authorities are creating significant obstacles to its exit from the market.
Separately, Grizzly Research claimed that RBI is allegedly significantly underestimating the amount of funds frozen in Russia.
According to the firm, the bank reports 700 million euros in frozen funds, while the actual amount, in its view, exceeds 12 billion euros.
“RBI’s disclosures do not give shareholders a clear picture of how much money is actually frozen in Russia and inaccessible to the entire group,” notes Grizzly Research.
Grizzly Research is among a group of activist investors who may publicly disclose violations or inaccuracies they have identified in companies’ operations and take short positions in their shares.
This means that the investor is counting on a drop in the stock price, after which they can buy the shares at a lower price.
In its report, Grizzly Research stated that it had opened a short position in RBI shares.
Grizzly Research also released an audio recording of a conversation between one of its representatives and a Raiffeisen employee.
When asked whether the bank continues to operate in Russia despite public statements about leaving the country, and whether it is possible to “plan for the long term” in terms of cooperation with it, the employee replied:
“We’re staying… Overall, the bank is operating; it’s not going anywhere.”
Meanwhile, in 2025, the Financial Times reported that following Donald Trump’s return to the White House and the new U.S. administration’s attempts to mend relations with Moscow, RBI had even halted efforts to sell its Russian division.
At the start of the full-scale invasion, the Austrian group Raiffeisen Bank International had expected a swift end to the war with a Russian victory and a subsequent return to business as usual in Russia.
The European Union’s 21st package of restrictions may include measures related to the Austrian Raiffeisen Bank International. So far, EU countries have been unable to finalize the new sanctions package, in part due to disagreements regarding the banking group. At the same time, the bank’s press office noted that discussions are focused on an issue related to a stake in the Austrian construction company Strabag.
