Short-selling firm Grizzly Research published a report accusing Raiffeisen Bank International’s Russian subsidiary of facilitating $1,191 billion in trade linked to Western sanctions. Following the release, the bank's shares fell by approximately 9%.
The report claims that €106,75 million of these trade flows involved sensitive technologies from the Common High Priority List, which includes components for military applications. Grizzly CEO Siegfried Eggert characterized the bank's Russian operations as highly active.
Grizzly Research alleges that €12,6 billion in cash and central bank placements are trapped within Russia. This figure significantly exceeds the €735 million in legally restricted cash that the bank has officially disclosed.
Raiffeisen Bank International is currently the largest unsanctioned Western bank operating in Russia. Previous attempts by the lender to exit the market have been hindered by Russian government decrees and ongoing litigation.
The bank has formally dismissed the allegations made by the short seller. Despite the rebuttal, the market reaction resulted in a nearly 9% decline in the company's stock price on the day the report was published.
