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Russian companies stole 500 million euros at ING in the first days of war

Russian companies have placed around 500 million euros with the Russian branch of ING in recent weeks. The companies tried to avoid sanctions against Russian banks if possible.

“We saw in the first days of the war that Russian customers brought us working capital,” said an ING spokesperson. “Probably our customers would rather have their money with a foreign bank than with a Russian bank in view of the upcoming sanctions.”

The millions are now not in the Netherlands, but are – as usual – placed with the Russian central bank. As a result, ING sees the money as an extra risk.

The Russian branch of ING only has business customers. In total, ING does business with Russian customers for 5.3 billion euros. In addition, it does business for 1.5 billion euros with companies outside Russia with a Russian owner. That is less than a percent of the bank’s total loan portfolio.

700 million hit by sanctions

Some of ING’s outstanding Russian loans are subject to sanctions imposed by the EU, the United States and the United Kingdom, among others. 700 million euros in loans are now being hit. “Not all sanctions have yet come into effect, so interest and repayments are still coming in on some of the loans.”

ING also takes into account Russian sanctions that affect the bank. “We are getting signals that the Russian central bank wants to ban transferring foreign currency to foreign banks.”

Investors reacted alarmed this morning to ING’s exposure to the sanctions. After major losses earlier this week, the ING share recorded a loss of more than 5 percent around 10:30 am.

Russian companies stole 500 million euros at ING in the first days of war
Source link Russian companies stole 500 million euros at ING in the first days of war

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