Hungary’s largest bank, OTP, is reviewing its strategy in Russia and is considering a complete withdrawal from the country, Chief Executive Officer Péter Csányi has told Bloomberg.
The review comes as OTP seeks regulatory approval for its planned acquisition of Baltic banking group Luminor, a deal that would significantly expand its presence in the euro area. OTP expects the review to be completed by the end of 2026, with the decision taking into account long-term shareholder value and the bank’s strategic commitment to the Baltic region.
Luminor deal sharpens focus on Russia
The Russian operation remains profitable. According to figures reported by Bloomberg, its profit reached approximately HUF 202 billion (about EUR 550.3 million) last year, having increased more than fivefold since 2021. OTP has also repatriated around EUR 774.4 million in dividends from its Russian subsidiary. Csányi said limited progress in bringing additional dividends out of Russia was one reason for the strategic review.
OTP agreed in July to acquire Luminor Holding from DNB and funds managed by Blackstone. The Baltic banking group operates across Estonia, Latvia and Lithuania. The deal would strengthen OTP’s position in the euro area while putting renewed focus on its continued presence in Russia. Estonian Finance Minister Jürgen Ligi has said the bank’s Russian operations are a moral shame, while Baltic regulators have also raised concerns.
OTP has already scaled back in Russia and laid eyes on something else
OTP Bank Group has continued operating in Russia since the full-scale invasion of Ukraine in 2022, although it says it has substantially reduced its activities there. The bank suspended corporate lending after the outbreak of the war and withdrew intra-group financing from its Russian subsidiary. Its current Russian operations are largely focused on retail consumer lending and deposits.
OTP said it has reduced its Russian workforce by 25 per cent and its branch network by 40 per cent. At the same time, its Ukrainian business has expanded, with the bank reporting a 35 per cent increase in its loan portfolio in 2025.
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Bloomberg documents raise questions
Bloomberg reported that documents it reviewed show that some OTP customers included companies controlled by Gazprom, while other customers provided services to organisations linked to Russian intelligence. One set of emails from April and May 2026 discussed a potential payment arrangement involving Gazprom Export, Gazprom-controlled Yugorosgaz and Gazprom subsidiary Rosingaz.
Under one proposed arrangement, money would have been transferred from a Yugorosgaz euro account at OTP Serbia to a Rosingaz account at Serbia’s state-owned Banka Poštanska Štedionica. The documents do not establish that the transaction was completed. OTP said it conducted an internal review following Bloomberg’s questions and found no evidence that any member of the OTP Group had breached applicable sanctions. The bank reiterated its commitment to complying with UN, EU, US and UK sanctions.
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Leaving won’t be so easy
Selling the Russian subsidiary could prove complicated. OTP says Russian rules and international restrictions make finding an acceptable buyer difficult, while sellers leaving Russia can realise only a fraction of an asset’s market value. The bank has previously said that selling its Russian business is currently “practically impossible”.
OTP therefore faces a strategic choice between retaining a profitable but increasingly isolated operation and pursuing a deeper European focus through its planned Luminor acquisition. The outcome of the review, expected by the end of the year, could determine the future of OTP’s two-decade presence in Russia.
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