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The Russian subsidiary of Austria's Raiffeisen Bank International (RBI) said on Monday it had temporarily suspended the opening of new brokerage accounts as European regulators demand the group reduce its Russia exposure.

The European Central Bank (ECB) has told euro zone banks still operating in Russia to cut their ties. ECB Banking Supervision has asked all banks with significant exposure to Russia to speed up their de-risking efforts by setting a clear roadmap for downsizing and exiting the Russian market.

"Due to the ECB's directive to RBI Group, Raiffeisen Bank is forced to reduce the volume of operations on the Russian market," Raiffeisen Bank in Russia said.

"At this stage, we decided to temporarily suspend the opening of new brokerage accounts from July 26, 2024, for retail investors."

The bank said existing accounts would be serviced as usual.

RBI is the largest Western bank in Russia, still making more than half of its consolidated profits in Russia.

This fall, the ECB demanded Raiffeisen by cut back on loans in Russia paring back international payments from Russia by 2026. The U.S. has warned RBI that access to the U.S. financial system could be curbed because of its Russia dealings.

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