Discussion topics at the clandestine gathering between Russian legislators and European financiers
The Lowdown on Foreign Banks Making a Comeback to Russia
In a recent meet-up with European business bigwigs, Anatoly Aksakov, Chairman of the State Duma's Financial Market Committee, revealed that these financiers showed keen interest in diving back into the Russian market. However, it's yet to be seen if this interest will transform into concrete action as no formal applications have been lodged with the Russian authorities.
Before the tensions between Russia and the West boiled over, foreign banks like Raiffeisenbank (Austria), Rosbank (France), UniCredit Bank (Italy), Citibank (USA), Home Bank (Czech Republic), and OTP Bank (Hungary) had a significant presence in Russia. But things have changed since then, with numerous foreign banks reducing their footprint in the country. For instance, Société Generale (France) and PPF (Czech Republic) have offloaded their Russian assets, while Citibank had already shut down retail operations in Russia before 2022.
According to Natalia Milchakova, a leading analyst at Freedom Finance Global, foreign banks currently account for 4-5% of Russia's financial market, a significant drop from the 11% they held at the start of 2022. Raiffeisenbank and UniCredit Bank are still hanging in there, making it to the list of systemically important credit organizations compiled by the CB.
Raiffeisen Bank International had reportedly put the sale of its Russian business on the backburner due to potential shifts in the international situation and the resumption of political dialogues between Russia and the US. The Italian household appliance manufacturer, Ariston Group, has already set the ball rolling by announcing its return to Russia.
It's important to note that any returning foreign banks would face protective measures that prioritize domestic businesses, as per the Kremlin's stance. The Russian Union of Industrialists is planning to propose re-entry regulations by April.
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Insider Info:
- Despite the expressed interest by foreign financiers in the Russian market, no formal applications have been filed with the Russian authorities.
- The foreign presence in Russia’s financial sector has dropped from 11% (2022) to 4-5% (2025).
- Key players like Société Générale (sold Rosbank in 2022) and Citibank (exited retail operations) are among those mulling a possible return.
- Raiffeisen and UniCredit are still holding on but have publicly maintained their exit intentions.
- Any returning banks would face protective measures favoring domestic businesses.
- I'm not sure if the expressed interest from financiers will convert into concrete action within Russia's industry, as no formal applications have been lodged with the authorities yet.
- In the current financial market, foreign banks account for only 4-5%, significantly lower than the 11% they once held before 2022.
- Some key players like Société Générale and Citibank, who had exited the market or sold their assets, are considering a possible return to Russia's business sector.
- Any foreign banks planning to resume operations in Russia will likely face protective measures designed to prioritize domestic businesses, as per the Kremlin's stance.
