€700 million of Russia's ING loans affected by sanctions

€700 million of Russia’s ING loans affected by sanctions

This amount represents 0.9 percent of all the money the bank has lent to businesses, governments and consumers. The bank states that Explanation On his exposure to the increasingly isolated country internationally. ING has the largest amount of business in Russia among the major Dutch banks.

Money back

A team of specialists is investigating the exact consequences of the bank, says spokesperson Dan Winthault. The work of a monk. He explains that it depends, among other things, on the type of penalties and on whom they depend. “We evaluate it on a case-by-case basis.”

For example, the bank tries to recover the money as a loan before the penalty takes effect. Once this is the case, the funds are frozen. “So there is no longer any interaction with this customer.”

The European Union, the United States, the United Kingdom, and other countries, among others, have imposed sanctions against persons or entities involved in the Russian invasion of Ukraine. These sanctions in particular have some impact on Russia’s ING activities.

No problems so far due to SWIFT Siege

In addition, Russian customers may encounter a problem after the country’s central bank restricted transfers in foreign currencies. The exclusion of seven Russian banks from the international messaging system SWIFT, which enables fast payment transactions, does not present any major problems, ING reports.

Guarantees of at least 2.5 billion euros were provided for all loans in Russia. This concerns, for example, guarantees provided by European parent companies, credit insurance and assets that are transferred to ING as collateral in the event of customer default.

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It is unclear how much of the €2.5 billion in guarantees belongs to sanctioned customers – and what limits ING’s risk. The bank is not clear on this.

There are no new Russian customers

In Ukraine, ING has 500 million euros of outstanding loans. Parent companies guarantee 200 million of those.

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