Netherlands' ING Group selling Russian bank to newly created company, to report losses of 700 mln euros
MOSCOW. Jan 28 (Interfax) - The Netherlands' ING Group has agreed to sell its business in Russia to Moscow investors with experience in factoring services, ING said.
The buyer is formally AO Global Development with authorized charter capital of 15,000 rubles, registered in November 2024, whose CEO is listed as Andrei Muravyov, who also heads the small AA Group factoring company. Muravyov previously headed the Clover factoring company.
The group will effectively wind down its presence on the Russian market following the deal. Global Development acquires shares in ING Bank under the terms and conditions of the agreement. The new owner of the bank intends to continue servicing clients in Russia under a different brand.
A thorough legal review preceded the deal that various regulatory authorities must now approve, and the deal should be closed in the third quarter of 2025, ING Group said. The group expects losses of around 700 million euros from exiting the Russian market. Of this, the loss of 0.4 billion euros represents the difference between the sale price and the carrying value of the business, and another 0.3 billion euros is the estimated negative impact from the currency conversion adjustment through profit and loss.
Since February 2022, the ING Group has ceased operations with new clients from Russia, reduced business activity and taken measures to separate its Russian bank from the group's networks and systems. ING's total lending to Russian clients has decreased by more than 75%.
After the sale of ING Bank, the group will continue to reduce risks associated with Russian clients structured outside of Russia. As of September 30, 2024, this risk, which has been reserved by other ING companies outside Russia, amounted to 1 billion euros.
ING Bank ranks 68th in the Interfax-100 ranking prepared by the Interfax Center for Economic Analysis for the third quarter of 2024, with assets of 98 billion rubles.
