Dutch bank ING is selling its Russian business to Global Development JSC, a Russian company owned by a Moscow-based financial investor.

The agreement, which is still subject to regulatory approval and will be completed in 2025 Q3, ends ING’s direct activities in Russia. Global Development will serve the bank’s former customers under a new brand.

The Dutch bank said in a statement that since February 2022, it has taken on no new business with Russian companies, has scaled down operations and has taken actions to separate the business from ING’s networks and systems.

The sale is expected to result in a €700 million post tax impact on ING’s 2025 earnings.

Once the deal is completed, ING will “continue to further reduce its offshore exposure to Russian clients”, the statement said. Russian clients currently have around €1 billion in ING accounts, including in the Netherlands.

ING is divesting its Russian interests as part of sanctions imposed on that country since the invasion of Ukraine in February 2022.