Main image: OTP Bank takes part in the 2026 St Petersburg International Economic Forum (SPIEF), ZUMA Press / Scanpix
Hungarian banking group OTP has announced the signing of 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 Norway’s DNB Bank. At the same time, OTP stated that, in the four years since the start of Russia’s full-scale invasion of Ukraine, it has been unable to find a legally, morally, and economically acceptable way to exit the Russian market, according to LRT.
Budapest-based OTP operates in 11 countries, while its Russian subsidiary, JSC OTP Bank, has around 800 branches and serves approximately 2 million active customers, accounting for 0.3% of the Russian banking market.
Responding to questions from LRT, an OTP representative explained that selling the Russian business under current conditions would mean disposing of assets for only 5% of their market value, which would effectively amount to transferring valuable resources to the Russian economy.
The bank stressed that it is reducing risks by halting capital injections, ending group financing, and withdrawing dividends, while complying with international sanctions. At the same time, OTP continues to operate in Ukraine as an important lender.
Nevertheless, OTP’s presence in Russia has drawn strong criticism, as its Russian subsidiary presents itself as a major employer and participates in official events, including the St. Petersburg International Economic Forum.
Meanwhile, Luminor attempted to reassure customers in Lithuania, Latvia, and Estonia, stating that until regulatory approvals are obtained, the transaction will not affect the provision of day-to-day banking services.
