OTP Bank may completely leave Russia by the end of 2026

OTP, the largest bank in Hungary, may completely leave Russia before the end of 2026. This was stated by the head of the OTP Group, Peter Csanyi.

The group is reviewing its Russian business strategy; it is planned to be completed by the end of the year.

After the outbreak of hostilities in Ukraine, OTP ceased corporate lending and intra-group financing of Russian businesses, its activities in Russia are almost entirely focused on retail consumer lending. The bank's market share is around 0.3 percent, making it a minor player in the country compared to rivals UniCredit and Raiffeisen.

Now business in Russia is under close attention of regulators, as OTP is negotiating the purchase of the Baltic bank Luminor Bank AS. This will be the Budapest-headquartered bank's largest acquisition to date and will allow it to expand its presence in the eurozone.

In a statement, OTP said it had reduced its activities in Russia and had not identified any violations of international sanctions. The central banks of Latvia and Lithuania have previously expressed concern about OTP's activities in Russia, with Estonian Finance Minister Jurgen Ligi calling it a "moral disgrace."

“Given its strategic interest in the Baltics and limited progress in collecting additional dividends from Russia over the past year, OTP has begun to review its Russia strategy, including a potential complete exit from the Russian market. The strategy review is expected to be completed by the end of the year and the outcome should maximize long-term shareholder value, particularly given the success of the group's international expansion strategy,” said Peter Chani.