According to documents obtained by Bloomberg, Raiffeisenbank profits from firms supplying Vladimir Putin's armed forces. The Russian branch of the bank received over 62 million rubles last year for its services from the chemical company "Unikhim", as evidenced by bank statements. "Unikhim" supplied ingredients necessary for the production of military systems to a sanctioned company. Reports indicate that "Unikhim" supplied acids to the sanctioned Russian firm "Ravenstvo", including for a Russian state project, which, according to European government officials, is engaged in the development and modernization of platforms and ammunition for multiple rocket launch systems and guided bombs.
European government officials familiar with the documents say that it is "almost certain" the bank has other clients supplying products to the Russian defense industry after Putin shifted the country's economy to a war footing.
Last year, Raiffeisen earned over 1 billion euros in profit after taxes from its Russian branch in the first three quarters. This accounted for nearly 50% of the entire group's profit and more than doubled the income of the branch for the two full years before the invasion. During the same nine-month period, the bank paid Russia 277 million euros in taxes.
The Austrian lender claims it has been trying to figure out how to exit Russia for three years. It is under pressure from US regulators and the European Central Bank to expedite its exit. Additionally, Raiffeisen also operates one of the largest foreign-capital banks in Ukraine, where it is a key provider of financing for the agricultural sector.
Bank statements of the Russian chemical producer "Unikhim", which is not sanctioned, show that last year it paid Raiffeisen commissions, as well as expenses for money transfers, account maintenance, and fees related to currency operations. "Ravenstvo", according to the US Treasury, develops and manufactures navigation radar systems. The company is a subsidiary of the sanctioned state concern "Granit-Electron", which produces key elements of missile systems, such as automatic control systems and electronic warfare systems for the Russian navy. At the same time, the "Granit-Electron" concern is also linked to the "Tactical Missile Armament" corporation, a state defense conglomerate that produces many of the weapon systems used by Russia against Ukraine. All three companies were sanctioned by the US shortly after the Russian invasion, and they are also subject to EU restrictions.