ING Group Cancels Sale Agreement for Russian Subsidiary ING Bank
Dutch financial group ING Group has decided to terminate the agreement to sell its subsidiary bank in Russia, known as ING Bank, amid doubts about the buyer's ability to secure necessary approvals.
The Dutch financial group ING Group has made the decision to cancel its agreement for the sale of its subsidiary bank in Russia, referred to as ING Bank. This move comes against a backdrop of uncertainty regarding the ability of the Russian company Global Development, designated as the buyer, to obtain all necessary permits to finalize the transaction. This information was reported by the publication Kommersant.
In its official statement, ING Group emphasized its continued focus on ceasing its operations in the Russian market. Nevertheless, the company acknowledged that implementing any exit strategy from the Russian business other than a sale would negatively impact the group's financial results. At the same time, even the sale itself would result in substantial losses for ING Group, estimated at approximately 700 million euros. This situation arises because, under Russian law, banks owned by entities from so-called 'unfriendly countries' are sold at a significant discount.
It is important to recall that ING Group announced its intention to sell its subsidiary bank at the end of January 2025. However, the purchasing company, Global Development, was registered only a few months prior to the announcement of the deal, and its charter capital amounted to a mere 15,000 rubles, equivalent to about 190 US dollars. Initially, the transaction was expected to be completed in the third quarter of 2025, but in September, ING Group reported delays in finalizing the deal due to the buyer's failure to secure all necessary approvals.
According to information from the publication, the collapse of the deal may have been influenced by claims from the Russian authorities regarding the buyer's candidacy. Under Russian law, a special decision from Vladimir Putin is required to complete the transaction, as well as approval from the Central Bank.
Russian experts believe that the failure of the sale agreement for ING Bank could have indirect effects on the sale of other subsidiary banks owned by entities from so-called unfriendly countries. This could create additional difficulties for foreign investors attempting to exit the Russian market.
As of January 1, 2026, ING Bank ranked 66th in terms of assets among 305 Russian commercial banks, with assets exceeding 101 billion rubles, or 1.3 billion US dollars. In Ukraine, there is also a subsidiary of ING Group — ING Bank Ukraine, which operates in the corporate-investment segment and ranks 21st in terms of assets among 60 Ukrainian banks, with assets amounting to 29.7 billion hryvnias.
Earlier reports indicated that Russia experienced significant disruptions in banking operations twice a week, on April 3 and April 6, due to IT system failures. These events underscore the challenges facing the country's financial sector and may influence future decisions by foreign companies regarding their business operations in Russia.