RBI expects to be told to cut lending, payments involving Russia
Bank says demand could make it harder to sell Russian business
RBI under pressure for ongoing ties with Russia

FRANKFURTVIENNA, April 18 Reuters Raiffeisen Bank International RBI expects to be told by European regulators to slash lending and payments involving Russia, the Austrian bank said on Thursday, ratcheting up pressure on the biggest Western bank in Russia.

According to the latest draft of proposals from the European Central Bank ECB, RBI will be told to cut loans to customers in Russia by up to 65 compared with the third quarter of last year and pare back international payments from Russia by 2026, the Austrian bank said.

The move, which RBI expects to be announced in the near term, would be a blow for the bank, which has resisted pressure from international regulators to cut its ties with Moscow.

The ECB declined to comment.

Two years after Russia39;s invasion of Ukraine, RBI remains a critical financial lifeline for millions of Russians who want to send euros or dollars abroad.

RBI has said it intends to spin off its Russian business, but more than two years since Moscow launched its fullscale invasion of Ukraine, little has changed. The bank said the ECB39;s demands could make it harder to sell up.

RBI39;s presence underlines the depth of relations between Austria and Russia, which maintain close ties through Russian gas pipelines and finance, with Vienna a hub for cash from Russia and…