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ING Terminates Sale Agreement for Russian Business
The Dutch lender said it sees no realistic path to approvals and is separating the unit from global systems as it scales down operations.
- On Tuesday, ING terminated its agreement to sell ING Bank to Global Development JSC, concluding there is "no realistic expectation that the buyer will obtain the necessary approvals" from Russian regulators.
- The Financieele Dagblad reported last month that Kremlin restrictions have blocked the exit, as Russian officials rely on Western banks for international payment traffic and restrict their departure from the market.
- ING remains committed to ending its Russian activities, having already separated ING Bank from global systems; the failed sale to Global Development JSC was set to result in a loss of around €800 million.
- "We are assessing the next steps to achieve this goal," ING stated, with any alternative exit scenario expected to cost around 0.07% of its capital and offshore exposure reduced to €600 million.
- President Vladimir Putin must authorize all sales of local assets; while Putin approved Citibank's sale to Renaissance Capital in November, other Western firms face similar regulatory hurdles blocking their departures.
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17 Articles
17 Articles
After waiting for over a year, the Russian government has still not given permission for the planned sale of ING Russia to a local party, and…
·Netherlands (Kingdom of the)
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The Dutch bank no longer expects the buyer to receive the necessary permits for the transaction, making the lengthy withdrawal from Moscow more difficult.
·Düsseldorf, Germany
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Total News Sources17
Leaning Left3Leaning Right3Center3Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
Factuality
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