The European Central Bank is advising Raiffeisen Bank International and UniCredit to maintain additional capital reserves to mitigate risks associated with their operations in Russia.

This move is in response to the challenges these banks face in a market where they lack effective control over their activities. Adjustments to the banks' individual capital requirements may be made to reflect these specific risks.

Raiffeisen is also under pressure to strengthen its capital due to exposure to high-risk commercial real estate loans. The ECB's demands for a capital buffer related to Russia represent an additional financial burden for the banks, which have been slow to reduce their presence in the country following ongoing geopolitical tensions since the invasion of Ukraine.

Spokespeople for the ECB and UniCredit declined to provide comments, while Raiffeisen confirmed that its capital requirements would increase starting next year.