Russian “spy bank” tried to “pressure” Hungary as it faces bankruptcy
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Leaked internal files exposed that the Russia-linked International Investment Bank (IIB) tried to put pressure on the Hungarian government. The situation within the “Russian spy bank” is dire, and the Hungarian government could lose serious investment with very little return.
The International Investment bank, in which Russia holds a 45.4 percent share and Hungary has a 25.27 percent share which is increasingly likely to go under. Direkt36 got access to several leaked emails from the company. They show that the Russian bank either goes bankrupt or leaves Hungary, in which case it is unclear whether the money invested by the Hungarian government will be repaid.
As we have previously written, following the exit of the Czech Republic, Slovakia, Romania, and Bulgaria, Hungary remained the only European shareholder in the bank. The country’s shares increased by a massive 8 percent, to the current 25.27 percent.
Between two walls
However, the company is in a dire state. Only 4 days after Russia’s invasion of Ukraine, Belgian-based institution Euroclear blocked the bank’s funds, according to the leaked documents reviewed by Direkt36. Although the IIB has its headquarters in Budapest, the bank’s account was opened by a Russian financial institution, Rosbank. Therefore, Euroclear argues that the bank falls under the EU sanctions against Russia.
Curiously, the bank was also affected by Russian counter-sanctions. To lift those sanctions, CFO Elliott Auckland tried to show the IIB “as Russia-friendly as possible” to Moscow. With that, they successfully avoided a downgrading Moscow-based rating agency ACRA. However, that in itself couldn’t save the bank.
The IIB also tried to sell its office in Moscow, which was valued at EUR 48.5 million. But a senior executive argued that Hungary should not be notified of the sale. According to Direkt36, the thought was that “the Hungarian government should not think that the IIB could easily solve its problems on its own.”
