Table of Contents:
The sale of ING’s activities in Russia
The Dutch bank ING has made official its decision to sell its assets in Russia to Global Development JSC, a Russian company controlled by a financial investor based in Moscow. This move represents the conclusion of ING’s presence in the Russian market, a choice that the bank has announced through an official note. The transaction is scheduled for the third quarter of 2025, marking a significant change in the region’s banking landscape
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Economic impact of the transaction
Global Development JSC will acquire all shares in ING Bank (Eurasia), taking control of the operations and personnel currently employed in Russia. According to estimates provided by ING, the transaction will have a negative impact on the bank’s income statement of about 0.7 billion euros, net of taxes. This effect is expected in the next financial statements and represents a significant challenge for the Dutch bank, which has already faced several difficulties due to the current geopolitical situation
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Strategies for reducing presence in Russia
After Russia’s invasion of Ukraine in February 2022, ING has implemented various strategies to reduce its exposure to the country. The bank has stated that, once the transaction is concluded, its offshore exposure to Russian customers will continue to decrease through the other companies in the group located outside of Russia. This decision reflects a growing caution on the part of European financial institutions vis-a-vis the Russian market, in a context of political and economic uncertainties
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The economic context of the Eurozone
In a wider context, the Eurozone recently registered a 0.8% increase in per capita consumption and 0.4% in income in the third quarter of 2024. The European Union as a whole showed a similar increase in consumption and a 0.6% increase in income, according to data released by Eurostat. These results indicate a gradual but steady economic growth in the region, despite the challenges posed by the situation in Russia and global geopolitical tensions
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