Raiffeisen shares plummet after accusations about Russian 'daughter' bank
Shares of Austria's Raiffeisen Bank International fell sharply after the publication of a report by American short-seller Grizzly Research, which made a number of accusations regarding the work of the Russian "daughter" of the bank. During trading, RBI papers lost almost 10%, although the bank itself categorically rejected the findings of the study and is considering a lawsuit against its authors.
Grizzly Research published a study on the activities of Russia's Raiffeisenbank on September 17. The company claims it analyzed Russian customs records and identified trade operations worth $1.19 billion with goods that were subject to certain export or import restrictions by the EU, US, UK or Switzerland at the time of deliveries.
According to Grizzly, contracts in these records contain a registration code related to RBI's Russian "daughter". Among them, the researchers separately highlight goods worth $106.75 million that could be used in the military industry.
However, customs data alone does not prove that Raiffeisenbank financed these deliveries, made relevant payments, or that specific transactions violated sanctions legislation. Grizzly Research is a short-seller and directly reports that it has a short position in RBI shares, meaning it could benefit from a fall in their value.
Raiffeisen Bank International, after examining the report, categorically rejected the allegations. The bank said the document contains numerous factual errors, misleading statements, and assumptions.
In particular, RBI claims that among the companies listed in the report there are clients with whom the Russian Raiffeisenbank terminated relations even before these entities came under sanctions. Other mentioned companies, according to the bank, were never its clients at all.
RBI also stated that its sanction control and compliance systems have been repeatedly audited by independent auditors and regulators. The bank said it is analyzing legal options and considering a lawsuit against the authors of the report.
The publication caused a sharp reaction from investors. According to the Vienna Stock Exchange, on September 17 RBI shares fell to €58.50 against €64.85 at the close of the previous session - nearly 10%. By the end of trading, part of the losses was recovered: the papers closed at €60.95, which is 6.01% lower than the previous day. The trading volume increased significantly.
Raiffeisen has been trying for several years to reduce its business in Russia, but a full exit from the country has not yet taken place. The Russian subsidiary remains one of the largest banks with foreign capital on the Russian market.
Based on materials: Grizzly Research, Raiffeisen Bank International, Vienna Stock Exchange
