Kremlin received 800 million in fees from Western banks in Russia – Banking & Finance

O Kremlin received more than 800 million euros in fees from Western banks that maintain operations in Russia last year. The amount, which is reported today by the Financial Times, is four times higher than that paid in 2021 (200 million), before the start of the war.

The rise results from a better economic performance of the seven largest European banks by assets in Russia (Raiffeisen Bank International, UniCredit, ING, Commerzbank, Deutsche Bank, Intesa Sanpaolo and OTP), which together reported profits of more than 3 billion last year.

This value was also three times more than that recorded in 2021, being partly justified by funds that banks cannot withdraw from the country. Higher interest rates and sanctions imposed on Moscow contributed to the increase in profits. The European Union, for example, banned certain Russian banks from accessing the SWIFT financial transactions.

Although several European companies and other regions ceased operations in Russia after the invasion of Ukraine in February 2022, the case signals how foreign companies continue to be a source of financing for the Kremlin.