Dutch banking giant ING has announced that its efforts to divest from Russia have hit a roadblock. The sale of ING Russia, originally agreed upon last year, has been terminated

after Russian authorities refused to approve the transaction, the bank said on Tuesday.

“After careful assessment, we concluded that there is currently no realistic expectation that the buyer will obtain the necessary approvals,” ING stated, confirming the termination of the sales agreement.

Despite this setback, ING reiterated its commitment to exiting the Russian market. The bank said it is actively evaluating alternative strategies to wind down its Russian operations, though these are expected to come with similar financial implications. The planned sale to Russian investor Global Development would have resulted in a loss of approximately €800 million.

The Kremlin’s refusal to allow Western banks to leave the country is part of a broader effort to maintain control over the financial sector. According to the 'Financieele Dagblad', Russian banks are now largely cut off from the international payment system SWIFT, making the few remaining Western banks a critical channel for imports and capital transfers.

Since the Russian invasion of Ukraine in February 2022, ING has significantly scaled back its presence in Russia. The bank no longer accepts new Russian clients and has taken measures to isolate its Russian business from its global networks and systems.

Founded in 1991, ING Bank is one of the Netherlands’ largest financial institutions, with a strong presence in retail and commercial banking worldwide. The bank has been navigating a challenging post-2022 landscape, balancing regulatory compliance, geopolitical risks, and its commitment to international sanctions while seeking to protect shareholder value. Photo by User:adriana.monetory, Wikimedia commons.