ING Groep (ING) said Tuesday that it has agreed to sell its Russian business to Global Development, a Russia-based company, in a transaction which will yield a post-tax loss of 700 million euros ($730 million).

The sale "will effectively end ING's activities in the Russian market," the bank said. The transaction includes an estimated book loss of around 400 million euros.

Under the terms of the agreement, Global Development will acquire all shares of ING Bank (Eurasia) and take control of all Russian onshore activities and staff, the company said.

The transaction, subject to regulatory approvals, is expected to close in Q3, the company said.

ING said it will continue to reduce its exposure to Russian clients , after the transaction.