Court Blocks ING From Closing Gazprom Bank Account
A Dutch court has prohibited ING from closing the bank account of Russian energy firm Gazprom, allowing the company to retain its European banking access until an alternative is secured, nos.nl reported. The ruling prevents the financial institution from unilaterally severing ties, a step the bank attempted to take after setting an October 1 deadline.
Sanctions Risks and Reputational Concerns
ING sought to terminate the business relationship because of perceived sanctions and money-laundering risks following Russia’s invasion of Ukraine, alongside fears of reputational damage. Although Gazprom does not appear on European sanctions lists, the bank flagged compliance hazards and initially postponed account termination at the end of 2023 to give the energy firm time to find another institution.
The Search for Alternative European Banking
Gazprom challenged the closure in court because it has been unable to open an alternative European bank account, a necessity for paying local taxes and disbursing salaries to European employees. The court sided with the energy company, noting a lack of concrete evidence proving actual money-laundering risks while recognizing the practical impossibility Gazprom faces in finding a replacement bank.
Stalled Efforts to Exit the Russian Market
While ING remains blocked from dropping its Russian client, the bank itself continues to struggle with exiting its own operations in Russia. Last year, ING secured a buyer for ING Russia, but the transaction remains stalled because the local purchaser has failed to gain approval from Russian authorities.
Frequently Asked Questions
Why does Gazprom need a European bank account?
Without an active account within Europe, the energy firm cannot fulfill mandatory tax obligations or pay wages to its European-based workforce.
Is Gazprom currently subject to EU sanctions?
No, the Russian energy corporation does not appear on official European sanctions lists, though ING cited broader compliance and reputational hazards as reasons to sever ties.
What happens next for the banking relationship?
Gazprom remains a client of ING under the court injunction until the energy company successfully establishes a new European banking relationship elsewhere.
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