Dutch banking giant ING Groep NV has finalized an agreement to sell its Russian operations, marking a complete exit from the country nearly three years after the invasion of Ukraine. ING Bank (Eurasia) JSC will be sold to Global Development JSC, a Russian company owned by a Moscow-based financial investor, the bank announced on Tuesday.
The move is expected to result in a €700 million ($730 million) hit to profits, including an estimated book loss of €400 million. Despite the financial setback, analysts consider the loss manageable given the economic challenges and sanctions imposed on Russia. “A book loss of €400 million is limited considering the level of distress and European sanctions on Russia,” said KBC Securities analyst Thomas Couvreur in a note to clients.
The transaction, which is subject to regulatory approvals, is expected to close in the third quarter of 2025. ING also stated that it would continue to reduce its offshore exposure to Russian clients, which amounted to €1 billion as of September 30, 2024.
The sale makes ING one of the few European banks to fully exit Russia amid a challenging economic and regulatory environment. Other lenders, such as Italy’s UniCredit SpA and Austria’s Raiffeisen Bank International AG, continue to face difficulties in disentangling from their Russian operations. For instance, Raiffeisen recently faced a Russian court ruling holding its local unit responsible for over €2 billion in damages, prompting the bank to book a provision earlier this month.
ING first entered the Russian market in 1993 and had 259 employees in the country as of 2023. Revenue from its Russian operations totaled €136 million last year. Over the past three years, ING has steadily scaled back its Russian business in response to geopolitical pressures and European sanctions.
In a statement, ING emphasized that “extensive due diligence” was conducted before reaching the agreement. The sale underscores the bank's commitment to aligning its operations with sanctions and reducing its ties to Russia.
Despite the profit hit, ING’s decision reflects the broader challenges European banks face in navigating the complexities of exiting the Russian market.
