Raiffeisen shares slump after short-seller Grizzly spotlights Russia ties (updated)

Raiffeisen Bank International AG

17/09/2026 09:00

Raiffeisen is biggest Western bank in Russia
Austrian group has been in crosshairs of US over Russia
RBI denies 'misleading' Grizzly claims of sanctions-busting 
Adds detailed bank response
By Alexandra Schwarz-Goerlich, Linda Pasquini and John O'Donnell
VIENNA, Sept 17 (Reuters) - Austria's Raiffeisen Bank International (RBI) faces renewed scrutiny as the biggest Western bank still operating in Russia, after a short-seller alleged it was helping to enable more than $1 billion of Russian trade to circumvent sanctions.
Raiffeisen RBIV.VI said in a statement that it "categorically denies the allegations", adding that the report by Grizzly Research had claimed to identify companies that were never its customers. The bank's shares fell as much as 9% following publication of the report.
The episode shone the spotlight on a bank that still plays an important role for Russia, after a number of attempts to sell up failed.

        US authorities warned RBI in 2024 that it could be prevented from accessing US dollars on account of its dealings with Russia, but never carried out the threat.
Although RBI has pared back its business, it remains the biggest lender in Russia not subject to the sanctions that have isolated local rivals, meaning it has become crucial for trade payments, including gas exports.
Grizzly said the bank had become a key channel for getting around Western sanctions, involving trade of more than $1 billion and including some goods used in Russian weapons.
Grizzly said it had a short position on RBI's stock, which allows it to profit from a falling share price. 
     
FINANCIAL LINCHPIN IN AUSTRIA
With sprawling industrial holdings, more than 18 million customers from Vienna to Moscow and 44,000 staff, Raiffeisen is a financial linchpin for Austria and much of eastern Europe.
Russia became an even bigger money spinner for the bank after President Vladimir Putin's full-scale invasion of Ukraine in 2022, although Moscow has prevented it repatriating billions of euros in profits.
Russia occupied Austria at the end of World War Two, handing back its independence on condition it stayed neutral.
Vienna became an important financial hub for Russia, and Austria went on to become the first Western European country to buy Russian gas.
Raiffeisen has made several attempts to sell its Russian arm to a local buyer in the hope that Moscow would lift the bar on repatriating profits.
But sources say officials have opposed the sale in a desire to maintain what remains of Russia's economic ties with Europe, which still buys billions of euros of Russian oil and gas, albeit far less than before the war.
Raiffeisen's special status and its size - it is far bigger than the other European banks in Russia, Italy's UniCredit and the smaller Hungarian group OTP Bank - have allowed RBI to build up billions of euros in profits, now stranded there.

 (Reporting by Linda Pasquini; Additional reporting by Alexandra Schwarz-Goerlich; Editing by Elaine Hardcastle, Alexander Smith and Kevin Liffey)
 ((linda.pasquini@thomsonreuters.com))