How a Russian ally's bank earns billions in Ukraine

Against the backdrop of regular blocks on military and financial aid to Ukraine by Hungary, the activities of Hungarian OTP Bank attract particular attention. 

Despite pressure from Budapest on Kyiv, this bank not only continues to operate in the Ukrainian market but also holds the status of a systemically important financial institution. The National Bank of Ukraine's (NBU) decision to include OTP Bank in this list in 2023 is puzzling, given the preceding events.

War sponsor, but not for long

In spring 2023, the National Agency on Corruption Prevention (NACP) added OTP Bank to the list of international war sponsors. The reason was the bank's activities in Russia and its de facto recognition of the occupied territories of Donbas. However, a few months later, the bank was removed from the list after Hungary provided Ukraine with €500 million in aid. This decision raised even more questions: can such pressure from Budapest be considered sufficient grounds for reviewing sanctions?

Budget payments and tenders: why state bodies work with OTP Bank

Despite its questionable status, the bank continues to serve state bodies. Among its clients is even the National Academy of Management under the President of Ukraine. Notably, this educational institution is part of the system for training managers for public service, which casts doubt on the sincerity of Ukrainian authorities' calls to boycott OTP Bank. Furthermore, budget payments and payouts to Ukrainian military personnel go through it, raising concerns about the leakage of service members' personal data.

Formal sanctions: punishment or imitation?

The National Bank of Ukraine has applied sanctions against OTP Bank, but their effectiveness remains questionable. In March 2024, the regulator issued the bank a written warning for violating legislation in the field of anti-money laundering and counter-terrorism financing. This penalty proved to be purely symbolic, especially considering that a similar violation had been recorded six months earlier. The question of real measures against the Hungarian bank's activities in Ukraine remains open.

The bank backed by Hungary

OTP Bank is actively developing in Russia, increasing its financial indicators. In 2024, the bank's profit in the Russian market grew by 40%, reaching $372 million. Hungary provides political support to the bank on the international arena, confirming its close ties with the country's authorities. OTP Group Chairman of the Board of Directors Sándor Csanád consistently defends the position of the need to maintain operations in the Russian Federation.

A key market for OTP Bank

Despite the risks, Ukraine remains an important country of presence for OTP Bank. By the end of 2024, it ranked fifth among the country's most profitable banks, earning over 4 billion hryvnia. Its activities are not limited to banking operations — investment and leasing companies of the OTP group also operate in Ukraine.

Who lobbies the interests of the Hungarian bank in Ukraine?

To date, it remains a mystery who exactly in Ukraine supports the activities of OTP Bank. Against the backdrop of strict sanctions against Russian financial structures, the presence of a Hungarian bank actively operating in Russia raises questions. The country's authorities have not yet made attempts to review its status, which may indicate the existence of hidden agreements.

OTP Bank continues to increase its share in the Ukrainian market, serving both state institutions and military personnel. And if Russian Sberbank was forced to leave Ukraine, the Hungarian structure not only remains but also strengthens its positions.

According to Antikor