A Dutch court has blocked ING Groep (NYSE: ING) from closing the bank account of Russian energy giant Gazprom, allowing the company to maintain its banking relationship in the Netherlands until it secures an alternative European account, Dutch public broadcaster NOS reported.
The Bottom Line
- The Ruling: A Dutch judge ruled that ING cannot terminate its contract with Gazprom because the energy firm has not yet found an alternative European bank to handle basic operations.
- The Compliance Hurdle: ING originally severed ties at the end of 2023 over sanctions, money laundering risks, and reputational concerns following Russia’s invasion of Ukraine.
- The Operational Stalemate: While ING attempted to exit Russia by selling its local unit, that deal stalled after failing to win approval from local Russian authorities.
The Court Ruling Keeps Gazprom on Dutch Books
The injunction issued by the court forces ING to keep servicing Gazprom, despite the bank’s attempts to purge Russia-linked accounts from its balance sheet. ING had already extended the deadline for the account closure, but patience ran out on October 1 when the lender moved to enforce contract termination.
Without a functioning European bank account, Gazprom cannot execute basic financial transactions within the eurozone. The company relies on the facility to disburse salaries to European employees and remit local taxes. The court sided with the energy firm after verifying that it had exhausted all reasonable avenues to secure an alternative banking partner within the European Union.
Weighed Risk Profiles Versus Operational Reality
Following the invasion of Ukraine, European financial institutions rushed to isolate themselves from Moscow-tied entities. While Gazprom was never explicitly placed on the European Union sanctions list, ING categorized the relationship as a severe compliance liability. The bank cited heightened money laundering exposure and reputational damage as primary drivers for the exit.
However, the court found no concrete evidence supporting immediate money laundering risks tied to the disputed account. That evidentiary gap tipped the scales in favor of granting the injunction, keeping the account active indefinitely until Gazprom successfully transfers its business elsewhere.
| Entity | Action Taken | Current Status |
|---|---|---|
| ING Groep | Attempted contract termination on Oct 1 | Blocked by court order; account remains active |
| Gazprom | Sought legal injunction against account closure | Protected until alternative EU banking is secured |
| ING Russia | Sought buyer for local subsidiary | Deal blocked by lack of local regulatory approval |
The Unresolved Exit Strategy for Dutch Lenders
Last year, ING reached an agreement to sell its Russian banking division to an undisclosed buyer. That transaction remains frozen because local Russian authorities refuse to grant regulatory sign-off.
