Raiffeisen Denies Allegations in Short-Seller’s Report on Russia Ties
Short-seller Grizzly Research questioned the lender’s reliance on its Russian business and trade-sanction controls
- Raiffeisen Bank International shares fell 7% following the publication of a short-seller report by Grizzly Research.
- Grizzly Research questioned Raiffeisen’s reliance on its Russian business and its trade-sanction controls.
- Raiffeisen disputed the report, stating it identified factually wrong and misleading statements and stood by its compliance systems.
Raiffeisen RBI -6.01%decrease; down pointing triangle Bank International denied allegations made in a short-seller report about its business in Russia.
In a report, short-seller Grizzly Research questioned the lender’s reliance on its Russian business and trade-sanction controls.
Grizzly also alleged that Raiffeisen is a key channel for circumventing sanctions in Russia, an issue that extended to Iran and North Korea, and questioned the bank’s assurances to investors, regulators, and the public that it was gradually scaling back its Russian operations.
The stock fell as much as 9.8% on Thursday.
Raiffeisen said it identified a number of factually wrong and misleading statements.
“We stand by the strength of our compliance systems, which have been reviewed many times—both prior to and since the start of the full scale invasion [of Ukraine],” a spokesperson for Raiffeisen said.