LONDON/FRANKFURT, May 15 (Reuters) - The U.S. Treasury has warned Austria's Raiffeisen Bank International (RBI) that its access to the U.S. financial system could be restricted because of its Russian dealings, according to a person who has seen a letter detailing the threat.
The May 6 letter is the strongest warning yet to the biggest Western bank in Russia and follows months of pressure from Washington, and Europe, as they try to toughen up sanctions against Russia and further squeeze it financially.
RBI this month abandoned a $1.5 billion deal linked with a sanctioned Russian tycoon that the U.S. opposed. But the bank's ties to Russia run much deeper. Restrictions on its access to the dollar system would have potentially deeply damaging consequences.
WHY IS THE U.S. CONCERNED?
After Russia launched its full-scale invasion of Ukraine in February 2022, the U.S. responded with wide-ranging sanctions on Russia and its companies. Many Western companies, including banks, made a rush to exit.
