ING Group, the Netherlands’ largest bank by assets, has announced its decision to sell its Russian operations to Global Development JSC, marking its complete withdrawal from the Russian market.The agreement, revealed on Tuesday, will see the Moscow-based financial investor acquire all shares of ING Bank (Eurasia) JSC, with plans to rebrand the institution for domestic operations.

Financial Details and Impact

While the financial terms of the transaction remain undisclosed, ING anticipates a post-tax financial impact of approximately €0.7 billion ($730.7 million) as a result of the divestment.

The transaction, pending regulatory approval, is slated for completion by the third quarter of 2025. In the interim, ING plans to further reduce its offshore exposure to Russian clients, which was reported at €1 billion as of September.

Strategic Withdrawal

Since Russia’s invasion of Ukraine, ING has systematically scaled back its operations in the country.

The bank has refrained from initiating new business with Russian entities, significantly downsized its activities, and worked to sever its Russian branch from its broader network. As a result, ING has managed to reduce its lending exposure to Russian clients by over 75%.

Looking Ahead

The decision to sell its Russian arm aligns with ING’s broader strategy of distancing itself from geopolitical risks and ensuring compliance with international sanctions.

This move underscores the ongoing recalibration by multinational corporations in response to geopolitical uncertainties and regulatory pressures.