Raiffeisen Confirms Imposing Restrictions On Belarusian Banks

How can this affect Belarusians?

The Austrian banking group Raiffeisen Bank International (RBI) has confirmed the information that it limits its activities in Belarus. This is reported by the news agency APA. The point is that the Austrians will reduce correspondent relations with Belarusian banks. This may make it difficult for Belarusian banks to make international payments, both for companies and individuals,Zerkalo writes.

Earlier in May it became known that RBI decided to reduce correspondent relations with banks of the CIS countries. This was written by RBC, citing an unnamed representative of the credit institution. For example, in Kazakhstan, the largest bank Halyk Bank, which has correspondent accounts with RBI, because of this, introduced “restrictions on payments related to certain industries”. Other RBI clients in the country were reported to have done the same.

Later, information appeared that the Austrians would reduce correspondent relations with Belarusian banks, but this data was not officially confirmed.

How does all this affect Belarusians?

After the introduction of sanctions against the Belarusian banking sector, financial institutions had to introduce changes in foreign currency transfers abroad. Some financial institutions have lost their usual correspondent banks and continue to face this problem even now. For example, on May 15, Priorbank lost its American correspondent bank Citibank NA and stopped operations in dollars on its correspondent account.

At the same time, Raiffeisen Bank International limited cooperation with Belarusbank back in 2021 due to sanctions against our country. Now Belarusbank uses the services of the correspondent bank Commerzbank AG for transfers in euros.

This February, some Belarusian companies faced the problem of making payments in favor of European counterparties through Priorbank. At the same time, information appeared that this may be due to the tightening of requirements for correspondent banks in relation to Belarus by the Raiffeisen Bank International group.

However, for some Belarusian banks, Raiffeisen Bank still remains a correspondent bank, moreover, the only one. That is, there are apparently no other options for them to send transfers in euros and dollars abroad.

For example, RRB Bank sends transfers in euros and dollars just through the Raiffeisen Bank correspondent bank. However, there are restrictions on dollar transfers. “From February 15, 2023, the possibility of making transfers must be agreed with your manager,” the financial institution clarifies.

BSB Bank also sends transfers in dollars and euros via Raiffeisen Bank, while Technobank and BNB Bank — in euros. At the same time, BNB-Bank previously warned customers that from February 15 this year, it made changes to incoming and outgoing shipments in dollars for legal entities and individuals. “Making incoming or outgoing payments in dollars will be possible only with the participation of a certain list of banks,” the bank said.

In the current situation, banks that still have Raiffeisen Bank as the only correspondent bank will have to quickly look for other options on how to send customer funds abroad.