Despite sanctions imposed on Russia and the war in Ukraine, many European banks, including UniCredit, Raiffeisen, and ING, have stayed in the market. They defend themselves by arguing that the decision to withdraw from Russia is complicated by a range of factors.
Economic sanctions introduced by the European Union and the United States have forced banks to reassess the risks and ethics of doing business in a country that is increasingly isolated on the international stage.
Raiffeisen Bank International (RBI), which continues to operate in Russia despite pressure from the European Central Bank (ECB), has run into serious legal trouble. Russian courts have ordered it to pay damages, including in the dispute with oligarch Oleg Deripaska. In response, the government in Vienna is lobbying Brussels for changes to the 19th sanctions package. The aim is to secure an exemption from the freeze on Strabag construction company shares worth approximately 2 billion euros controlled by Deripaska. These funds would serve as compensation for RBI. Austria's Foreign Ministry stresses that the goal is to protect the interests of European companies and prevent Moscow's unjust enrichment. However, the idea has stirred controversy among other member states. Diplomats from several EU capitals warn that such an exception would send the wrong signal: it would encourage banks to maintain their presence in Russia rather than accelerate their exit. RBI shares on the Vienna stock exchange rose more than 6 percent on reports of the negotiations, but the European Commission and the bank are silent on details. This shows how delicate the balance is between supporting business and upholding the principles of EU solidarity.
Similar troubles afflict the Dutch-Belgian ING. In January 2025, the sale of ING's Russian subsidiary, ING Bank (Eurasia) JSC, to a local buyer, Global Development, was announced, which was supposed to end the group's presence on the Russian market. The transaction was to be completed in the third quarter, but the absence of all required regulatory approvals delayed the process. ING emphasizes that it continues to pursue finalization, with no material change in the projected financial impact: a net loss of approximately 800 million euros, including 500 million from asset impairments and 300 million from the recycling of currency translation differences. Since February 2022, the bank has halted new business with Russian entities, reduced operations, and disconnected systems from the global network. Exposure outside Russia to clients from that country has dropped by more than 85 percent, to 700 million euros at the end of June 2025, of which 300 million is insured by export credit agencies. Nevertheless, ING's CET1 ratio will take a hit of approximately 7 basis points. It is a reminder that even planned exits become a bureaucratic marathon under sanctions.
The sharpest blow has fallen on Germany's Commerzbank. In May 2024, a Moscow court approved the confiscation of assets belonging to the bank and the European arm of JP Morgan with a combined value of 12.4 million euros. The ruling stems from a dispute with Russia's Transkapitalbank, which is demanding compensation for EU sanctions from April 2022. This is not the only front: in June, a court in St. Petersburg awarded the Russian company RusChemAlliance Commerzbank assets worth 95 million euros in connection with the canceled Linde gas project in Ust-Luga, partially financed by the bank. The assets include bonds, real estate, and deposits, including a building in central Moscow. Commerzbank, like others, can appeal, but the wave of lawsuits — including against Deutsche Bank and UniCredit — suggests further confiscations ahead. Russia is responding to Western restrictions with escalation: forcing asset sales at depressed prices, installing new managers in subsidiaries, and blocking exits. According to analysis by the Yale School of Management, more than a thousand firms have already left the market, but hundreds remain trapped, like Auchan and Benetton. The ECB is renewing its calls for a complete severing of ties with Russia.
