Dutch Court Blocks ING From Closing Gazprom Bank Account
Dutch court blocks ING from shuttering Gazprom bank account
A Dutch court has ruled that ING cannot close the bank account of Russian energy company Gazprom, allowing the firm to maintain its European banking relationship until it secures an alternative account, nos.nl reported.
ING cuts ties with Gazprom over compliance risks
ING wanted to sever ties with Russian-linked entities following the invasion of Ukraine. While Gazprom is not listed on European sanctions lists, the bank argued that the energy firm presented severe compliance risks regarding anti-money laundering regulations and potential reputational damage. ING notified Gazprom of the impending relationship termination at the end of 2023.
Operational crisis and lack of alternatives
Gazprom challenged the decision in court because it has been unable to establish a replacement European bank account. Without an active account in Europe, the firm cannot execute basic operational requirements such as paying local taxes or issuing salaries to European staff.
Judiciary intervenes as patience runs out
ING attempted to accommodate the energy company by extending the deadline for the account closure. Patience ran out on October 1 of this year, prompting the bank to pursue contract termination. Gazprom turned to the judiciary to block the move, pointing to the total lack of alternative banking options. The court sided with the energy firm, noting that concrete proof of money laundering risks was absent.
Parallel Russian divestment stalls out
Parallel efforts by ING to divest its own Russian banking activities have stalled. The institution secured a buyer for ING Russia last year, but the prospective purchaser has failed to secure the necessary approval from local authorities to complete the transaction.