ING to take €700m hit after agreeing to offload Russian arm

(Sharecast News) - ING has agreed to sell its Russian business, the Dutch bank confirmed on Tuesday, bringing its presence in the country ton an end to nearly three years after the invasion of Ukraine. ING is selling the business to Global Development JSC, a Russian firm owned by an unnamed Moscow-based financial investor. Under the terms of the deal, Global Development will acquire all the shares in ING Bank (Eurasia), all its onshore activities and all staff.

Financial terms were not disclosed.

However, ING confirmed the sale was likely to wipe around €700m off profits post tax, including an estimated book loss of around €400m.

Russia invaded Ukraine in February 2022. Countries around the world issued a barrage of sanctions against the country and its citizens in response, while companies moved to either reduce their exposure or exit altogether.

However, the Kremlin put heavy restrictions on Western businesses looking to divest, complicating many planned exits.

ING said: "Since February 2022, ING has taken on no new business with Russian companies, has scaled down operations and has taken actions to separate the business from ING's networks and systems.

"At the same time, total lending exposure to Russian clients has been reduced by more than 75%.

"After the transaction, ING will continue to further reduce its offshore exposure to Russian clients." The exposure stood at €1bn as at 30 September 2024.