Lithuanian politician seeks security review of OTP Bank's Luminor acquisition over Russia ties

Lithuanian politician Mindaugas Lingė has formally requested national security agencies to evaluate the potential risks to the country's security posed by the acquisition of "Luminor" bank by "OTP Bank." The primary concern stems from "OTP Bank's" ongoing business activities and expansion within the Russian Federation.

Lingė has urged the Government Commission for the Protection of Objects Important to National Security, the Bank of Lithuania, and the State Security Department to assess the implications of a critical part of the financial infrastructure falling under the control of an entity that continues to operate in Russia. The request specifically asks for an evaluation of "OTP Bank's" connections to Russian institutions, entities they control, and individuals on EU sanctions lists.

This move comes as "OTP Bank" recently signed an agreement to acquire "Luminor," the third-largest banking group in the Baltic region, from a consortium of private equity funds managed by "Blackstone" and "DNB Bank." "OTP Bank" operates in eleven countries, including Russia, where it functions as "JSC OTP Bank," offering retail banking, loans, and deposit services. The bank reported having 2 million active clients in Russia and being among the top 50 banks there, with operations in 800 locations.

Representatives for "OTP Bank" in Hungary stated that their market share in Russia is minimal, around 0.3%, and that a forced withdrawal would have benefited the Russian economy. They noted the current sale price represents approximately 5% of the market value. The acquisition is contingent on receiving necessary governmental and regulatory approvals. "Luminor" reported assets of 15.9 billion euros last year and a net profit of 158 million euros, holding a significant 9.4% market share in Lithuania's banking sector.

“

I ask for your assessment within your competence of the risk that the transfer of a part of the critical financial infrastructure into the control of an owner continuing and expanding its activities in the Russian Federation poses to the national security interests of the Republic of Lithuania.