ING's Complete Exit from Russia: Sale to Global Development JSC

Deal News | Jan 28, 2025 | ING Ventures

ING's Complete Exit from Russia: Sale to Global Development JSC

ING, a prominent global financial institution, has announced an agreement to sell its Russian operations to Global Development JSC, a Moscow-based financial investor firm. This sale marks ING's complete withdrawal from the Russian market, following its strategic decision to cease new business activities with Russian clients post-February 2022. The transaction includes the sale of all shares of ING Bank (Eurasia) JSC and transfer of onshore activities and staff to Global Development. The deal, expected to conclude in Q3 2025, is aligned with ING’s ongoing effort to scale down its exposure to Russia, having already reduced its lending to Russian clients by over 75%. This divestiture is anticipated to result in a post-tax negative P&L impact of €0.7 billion, with a book loss of €0.4 billion due to the discrepancy between sale price and book value. Despite a slight CET1 ratio impact, further reduction of offshore Russian exposure is planned. ING continues its innovation-driven approach to sustainability and ESG performance, holding a robust market position.

Sectors

  • Financial Services
  • Banking
  • Mergers & Acquisitions

Geography

  • Russia – The article centers on the sale of ING’s operations in Russia, marking its exit from this market.
  • Netherlands – ING is headquartered in the Netherlands and is executing this strategic sale from its global operations base.
  • Europe – As part of ING's broader European presence, the strategic divestment impacts its regional exposure.

Industry

  • Financial Services – The article discusses the sale of ING's Russian banking operations, a core financial services activity.
  • Banking – The primary focus is on ING's banking operations in Russia, including their divestiture.
  • Mergers & Acquisitions – The transaction of selling ING's Russian business involves significant M&A activity.

Financials

  • 0.7 billion – Estimated negative P&L impact for ING post-tax due to the sale.
  • 0.4 billion – Book loss representing the difference between sale price and book value.
  • 1.0 billion – ING's offshore exposure to Russian clients as of September 2024.

Participants

NameRoleTypeDescription
INGVendorCompanyA global financial institution selling its Russian business operations.
Global Development JSCAcquirerCompanyA Moscow-based financial investor acquiring ING’s Russian operations.