(Jan 28): ING Groep NV agreed to sell its Russian business for an undisclosed price and effectively exit the country three years after it invaded Ukraine, resulting in a €700 million (RM3.2 billion) hit to profit.

The Dutch lender plans to sell ING Bank (Eurasia) JSC to Global Development JSC, a Russian company owned by a Moscow-based financial investor. The disposal includes an estimated book loss of around €400 million, which would have a negative impact of 5 basis points on its CET1 ratio, ING said in a statement Tuesday.

The deal makes ING the latest lender to leave Russia, after the country became increasingly isolated following its invasion of Ukraine. The bank had pledged to limit the cost for shareholders by gradually unwinding its Russian operations. It said it plans to further reduce its offshore exposure with Russian clients, which amounted to €1 billion as of Sept 30.

ING said it conducted “extensive due diligence” before agreeing to the deal, which is subject to regulatory approvals. It is expected to close in the third quarter.

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