Latvia's State Security Service (VDD) alerted senior government officials last year regarding the security risks associated with OTP Bank's continued operations in Russia, according to a report by Jauns.lv.
The disclosure reveals that Riga had identified potential threats linked to the Hungarian lender's business activities in Moscow well before the current intensification of scrutiny surrounding its planned acquisition of Luminor Bank.
OTP Bank, Hungary's largest commercial lender, maintains a significant presence in Russia, serving approximately 2 million retail customers.
OTP Bank, Hungary's largest commercial lender, maintains a significant presence in Russia, serving approximately 2 million retail customers.
This ongoing footprint has become a central point of contention as OTP Group seeks to complete its historic acquisition of Luminor Bank, a deal that would significantly expand its geographic footprint in the Baltic region.
The revelation that Latvian security services had previously flagged these risks underscores the geopolitical sensitivities embedded in the transaction.
The acquisition of Luminor has already faced regulatory and political hurdles due to OTP's refusal to fully exit the Russian market.