Dutch multinational banking and financial services company ING has terminated its agreement to sell ING Bank (Eurasia) JSC to Russia-based Global Development JSC, saying it no longer expects the buyer to secure the required approvals.
The bank still intends to leave the Russian market and is now considering other ways to end its activities there.
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ING expects any alternative exit route to have a financial effect broadly in line with the previously proposed sale, which it had estimated would reduce its CET1 ratio by about 7 basis points. The final impact will depend on the option pursued and the timing.
ING had announced the sale on 28 January 2025.
Under that agreement, Global Development JSC would have acquired all shares in ING Bank (Eurasia) JSC, taking over the bank’s onshore Russian operations and staff.
The transaction was subject to regulatory approvals and was expected to close in the third quarter of 2025.
At that time, ING said the sale would end its activities in Russia. It also expected a post-tax negative profit and loss impact of about €700m ($807m).
That figure included an estimated book loss of around €400m ($462m), linked to the gap between the sale price and the book value of the business, and an estimated €300m ($347m) impact from recycling the currency translation adjustment through profit and loss.
ING said the currency translation adjustment would not affect its CET1 ratio.
The firm has not taken on new business with clients in Russia since February 2022.
The company has reduced operations in the country and separated the business from its networks and systems.
Furthermore, ING said it will continue to cut its offshore exposure to Russian clients, which is held by entities outside Russia.
That exposure fell by almost 90% to €600m ($694m) by the end of 2025, of which €300m ($347m) is under ECA or CPRI cover.
