Support The Moscow Times!

Austria’s Raiffeisen Bank Suspends Euro Transfers in Russia and Neighboring Countries

A Raiffeisen Bank branch in Moscow. RBC / TASS

Austrian banking group Raiffeisen, one of the last Western lenders remaining in Russia, announced Wednesday that it will suspend transfers of euros to banks in Russia and several other countries popular among Russian travelers.

Starting July 3, Raiffeisen’s Russian subsidiary will block euro-denominated bank transfers to several former Soviet republics, including Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Armenia, Georgia, Belarus and Moldova. 

Transfers will also be blocked in the United Arab Emirates and Jordan.

Raiffeisen Russia said the change — impacting both individual and corporate clients — was due to “restrictions imposed by correspondent banks.”

Euro transfers will remain available for transfers made between Raiffeisen clients, the bank added.

Hundreds of thousands of Russian citizens have fled to many of the countries impacted by the latest changes since Moscow launched its invasion of Ukraine.

A key lifeline for Russia’s heavily sanctioned economy, Raiffeisen is believed to process around one-quarter of all euro-denominated financial transfers bound for the country, according to Reuters. 

Raiffeisen’s announcement on Wednesday came just a day after a 50% commission fee on incoming U.S. dollar transfers went into effect.

Last week, the European Central Bank issued a rare public call for all remaining eurozone banks to exit Russia “as soon as they can.”

Raiffeisen was said in May to have been making preparations for spinning off its Russian business after months of unsuccessful attempts to find buyers.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more