Judge blocks ING from closing Gazprom's last account
A Dutch judge ruled that the bank cannot end its relationship with the Russian energy company, which says it needs the account to pay European staff and tax.
A judge has barred ING from closing the last bank account of Russian energy company Gazprom, so it stays an ING customer until it opens an account elsewhere in Europe. The ruling in summary proceedings (kort geding) was published on Monday. The account is the last of 25 that Gazprom once held at ING through the Dutch company Gazprom International Projects.
Without a European bank account, Gazprom cannot, for example, pay tax or wages to European employees. Its lawyers argued that, given the current geopolitical situation, Gazprom obviously cannot open an account elsewhere.
ING has not wanted Russia-linked customers since the invasion of Ukraine and announced in December 2023 that it would end the relationship with Gazprom. It cited sanctions risk, money-laundering risk and reputational damage. In court it said: "The impression can arise that financial flows indirectly contribute to sustaining the Russian war effort." It also argued that there are many real alternatives abroad.
Gazprom is not on the EU sanctions list, and the judge found no indications that the account is used for fraud or money laundering. The court called ING's fear of sanctions and reputational risks "justified".
It still refused to let the account close, weighing that the Wft, the financial supervision act, is soon to change. Banks will have to open a business basic payment account for companies, associations and foundations, and may refuse only on a concrete legal basis, such as the money-laundering ban. The Tweede Kamer passed the change last May.
ING is meanwhile struggling to leave Russia itself. A buyer found last year for its Russian banking activities has not obtained approval from local authorities.
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Tweede Kamer
The House of Representatives, the lower and more powerful house of the Dutch parliament. Its 150 members are elected directly; it can amend bills and holds the cabinet to account.
Wft (Wet op het financieel toezicht)
The Financial Supervision Act is the main Dutch law that regulates financial firms such as banks, insurers and investment firms. It sets out the licensing, conduct and prudential rules they must follow and the powers of the supervisors, including De Nederlandsche Bank and the Netherlands Authority for the Financial Markets. It matters because it is the legal basis for how banks must deal with their customers, and for when a bank may refuse or end a service.