Raiffeisen is targeted by the…

Raiffeisen Bank International declares that it can ensure compliance with the sanctions. The US Office of Foreign Assets Control (Ofac) asked “general questions” regarding the payments business in Russia.

Die Raiffeisen Bank International (RBI) has been targeted by the US sanctions authorities for its Russia deals. The bank received a letter in January from the Office of Foreign Assets Control (OFAC), a department of the US Treasury Department responsible for overseeing and implementing sanctions once morest Russia, the bank confirmed on Friday information Archyde.com news agency previously learned from two insiders.

“The questions asked by OFAC are of a general nature and aim to clarify RBI’s payments business and related processes in light of recent developments regarding Russia and Ukraine,” a bank spokesman said in a written statement to Archyde.com. RBI was informed that the request was not triggered by a specific transaction or business activity. The bank said it is fully cooperating and has processes in place to ensure it complies with sanctions.

“Look at banks and financial institutions”

The US generally wants to take more action once morest banks with connections to Russia. “We’re looking at other banks and financial institutions to see how Russia is financially linked to the outside world,” James O’Brien, the US State Department’s sanctions coordination officer, told Archyde.com on Wednesday.

According to O’Brien, around 80 percent of the assets in the Russian banking sector have already been fixed. “It is quite possible that there will be more measures.”

Swift blocked, central bank reserves frozen

The West had blocked Russian financial institutions from accessing the international Swift payment system following Russia invaded Ukraine. Most of the largest Russian institutions such as Sberbank and VTB had to shut down their operations in Europe. Western governments also froze $300 billion in Russian central bank reserves.

But not all connections were severed: institutions such as the Italian Bank Austria parent company UniCredit and Raiffeisen Bank International (RBI) continue their business in the Russian market and have to comply with local regulations. Gazprombank, a subsidiary of gas exporter Gazprom, escaped tougher sanctions also because it handles energy trading transactions.

(APA/Archyde.com)