Dutch bank ING has agreed to sell its Russian business to Moscow-based firm Global Development JSC, marking its full exit from the Russian market nearly three years after the country’s invasion of Ukraine. The deal is expected to result in a €700 million post-tax loss for ING, according to a statement released on Tuesday.

Under the agreement, Global Development JSC, a company owned by a Moscow-based financial investor with a background in factoring services, will acquire all shares of ING Bank (Eurasia) JSC. The buyer intends to continue serving customers in Russia under a new brand. The transaction, which is subject to regulatory approvals, is expected to be completed in the third quarter of 2025.

ING has been scaling down its operations in Russia since February 2022, when the war in Ukraine began. The bank stated it has not taken on any new business with Russian companies since then and has reduced its total lending exposure to Russian clients by more than 75 per cent.

The sale will result in an estimated book loss of around €400 million, representing the difference between the sale price and the book value of the business. Additionally, ING expects a €300 million negative impact from recycling the currency translation adjustment through its profit and loss statement.

Despite the financial hit, ING emphasised that the transaction aligns with its strategy to reduce exposure to the Russian market. The bank also plans to continue reducing its offshore exposure to Russian clients, which stood at €1 billion as of September 2023.

“This transaction will effectively end ING’s activities in the Russian market,” the bank said in its statement. “We have taken extensive steps to separate the business from our networks and systems, and we remain committed to further reducing our exposure to Russian clients.”

The move by ING follows similar decisions by other Western financial institutions seeking to exit Russia amid increasing regulatory and geopolitical challenges. The Kremlin has imposed strict restrictions on foreign companies attempting to divest, often requiring sales to be made at significant discounts.

ING, one of Europe’s largest banks, operates in over 40 countries and employs more than 60,000 people. The bank has reiterated its commitment to sustainability and reducing its environmental, social, and governance (ESG) risks, even as it navigates the complexities of exiting the Russian market.

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