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.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

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 every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more