Dutch lender ING said on Tuesday it has terminated its agreement to sell its Russian business to Global Development JSC after concluding the buyer was unlikely to secure regulatory approval.

The bank said in a statement that there was “no realistic expectation that the buyer will obtain the necessary approvals” for the deal, which had been announced in January 2025 as part of its planned exit from Russia. ING added that it continues to see “no future” in the market and is assessing alternative options to complete its withdrawal.

The cancelled transaction was expected to mark ING’s full departure from Russia nearly three years after the country’s invasion of Ukraine prompted Western financial institutions to scale back operations. The proposed sale to the Moscow-based buyer was originally targeted for completion in the third quarter of 2025, subject to regulatory clearance.

ING indicated that any alternative exit route would likely have a similar financial impact to the scrapped deal. The bank previously estimated the divestment would result in a €700 million hit to profits, including a €400 million loss linked to the sale price and a €300 million impact from currency translation adjustments.

The group said the expected effect on its core equity tier 1 capital ratio would remain around 7 basis points, although the final outcome will depend on the timing and structure of its exit. It did not provide details on potential buyers or other strategies under consideration.

ING has progressively reduced its exposure to Russia since early 2022, halting new business with Russian clients and separating its local operations from its wider systems. The bank said its offshore exposure to Russian clients had fallen by almost 90 per cent to €0.6 billion by the end of 2025, with half of that amount covered by export credit or political risk insurance.

The attempted sale reflects broader difficulties faced by foreign companies seeking to leave Russia, where authorities have imposed strict conditions on divestments, often requiring steep discounts and government approval.

Despite these difficulties, one firm that has successfully exited the market is US bank Citigroup, which in February announced that it had completed the sale of its former Russian subsidiary to Renaissance Capital, finalising its withdrawal from the country after nearly four years of winding down operations. The transaction received the necessary regulatory approvals from Moscow and included all remaining businesses and about 800 employees

Ernesto Torres Cantú, head of international at Citi, said at the time: “We’ve now completed the final steps in Citi’s exit from Russia, a process that began in March 2022. We greatly appreciate the professionalism and hard work of our colleagues throughout this process.”

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