In a move reflecting ongoing concerns over international business operations in Russia amidst geopolitical tensions, a group of European Parliament members has penned an open letter urging Austrian authorities to intervene with Raiffeisen Bank International's plans to expand its workforce in Russia. This plea highlights the contrast between Raiffeisen's activities and the broader trend among Western banks to reduce or cease operations in the country due to the Russian-Ukrainian conflict.
The letter, shared by Lithuanian MEP Petras Auštrevičius on Twitter, is addressed to Austrian Chancellor Karl Nehammer, Finance Minister Magnus Brunner, and Foreign Minister Alexander Schallenberg. The MEPs express "deep concern" over Raiffeisen's ongoing and even expanding operations in Russia, notably their plan to hire more than 2,000 new employees. This expansion comes as a shock to many, as it starkly contrasts with the actions of other Western banks, which have largely withdrawn from the Russian market over the past year.
Critically, the letter points out that while other banks have reduced their Russian staff by thousands, Raiffeisen increased its workforce in Russia by nearly 10,000 last year. The MEPs argue that by continuing its operations in Russia, Raiffeisen is not adhering to the EU's restrictive measures, including those implemented by Austria itself. They claim that the bank's activities are indirectly bolstering Russia's material resources in its war against Ukraine.
"Given the ongoing aggressive war by Russia against Ukraine, it is imperative that Austrian leaders encourage Raiffeisen Bank International to align with its own public statements and wind down its operations in Russia," the letter states. The MEPs urge Austrian authorities to ensure all Austrian companies comply with sanctions and do not aid Russia's "unjust war."
The letter also reminds readers that Ukraine shares European democratic values and ideals and is a candidate for accession to the European Union. This point underscores the geopolitical and ethical implications of business decisions made by entities like Raiffeisen.
The call to action comes amidst reports that most major Western banks have exited Russia, leaving Raiffeisen as one of the primary financial conduits through which Russian businesses conduct transactions in dollars and euros. This position has reportedly allowed the bank to reap substantial profits, which subsequently contribute to the Russian federal budget through taxes.
Additionally, the letter references media reports about pressure from the United States on the Austrian bank to abandon plans to purchase an industrial package from a Russian oligarch valued at 1.5 billion euros.
This open letter from European Parliament members underscores the complex interplay between business interests and geopolitical ethics. It highlights the critical role that international financial institutions play in either supporting or undermining international sanctions regimes and the broader geopolitical landscape. The situation poses a significant dilemma for Austrian authorities as they balance national interests with international responsibilities, particularly in the context of the EU's stance on the Russian-Ukrainian conflict.
