Investing.com -- Shares in Vienna-based Raiffeisen Bank International AG (LON:0NXR) tumbled on Monday after Bloomberg reported that the bank has been earning income from companies that supply the Russian military, which continues its operations in Ukraine.
The Russian branch of Raiffeisen received over 62 million rubles (equivalent to $620,000) in service fees from a Russian chemical company during the previous year, as indicated by bank statements and other documents, the report said, citing documents seen by Bloomberg.
The report also added that the chemical company provided a sanctioned firm with the necessary ingredients for the production of military systems.
Officials from European governments who have seen the documents stated that it is "almost certain" that Raiffeisen has other clients that are supplying Russia's defense industry, Bloomberg said.
Following the release of this report, the bank's stock fell by 9.40% on Monday.
A spokesman told Bloomberg that the banks observes all relevant sanctions on Russian entities, and particularly those imposed by the European Union, the United States and the United Kingdom (TADAWUL:4280).
“RBI has implemented monitoring and screening systems, tools and procedures to ensure that all transactions and business activities are duly monitored to be in strict compliance with applicable sanction legislation,” he told Bloomberg.