The Austrian Raiffeisen Bank International (RBI) received a visit from the top sanctions officer of the US Treasury Department in connection with its activities in Russia. Brian Nelson, who is responsible for countering terrorism and money laundering as the department head, inquired about the status of business with Russia, the US embassy said today. Nelson emphasized that there was still a need to keep channels open for transactions in the energy and agriculture sectors.
In January, RBI received a letter from the US sanctions authority with extensive questions about its business in Russia. The bank explained that the request was of a general nature and was not triggered by a specific transaction or business activity.
RBI has been reviewing options for over a year
Nevertheless, investors reacted with fright because the US authorities can impose severe penalties for sanctions violations. RBI has been active in Russia for almost 30 years and is now the largest and most important western bank in the country. The institute has been examining all options for its Russian subsidiary bank, which is its biggest source of income, for over a year. She recently narrowed down options, saying the focus is now on a potential sale or spin-off of the business.
According to the US embassy, Nelson had traveled to Europe as part of a four-country trip. The focus was on coordinating the multilateral sanctions and export controls imposed on Russia because of the war in Ukraine. During his stay in the region, Nelson met with several European banks and companies that have contacts with Russia, sources said.
Meeting also with finance minister and OeNB governor
In Vienna he also met Finance Minister Magnus Brunner, the Governor of the Oesterreichische Nationalbank (OeNB), Robert Holzmann, and other people. Brunner had announced on Twitter that the effectiveness of the sanctions against Russia were also in Austria’s interest. Financial assets worth almost two billion euros have been frozen in Austria since the start of the Ukraine war.
