Company: INGVF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001628280-25-036812
Chunk: 19

Company: ING GROEP NV
Filing Date: 2025-07-31
Form: 6-K
Chunk 19
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 remained elevated in the first half of 2025, driven by ongoing conflicts, increased rising global tensions, and diverging policy approaches affecting the global risk landscape. These dynamics contribute to further market volatility and operational uncertainty across regions. Major developments included renewed tensions in global trade relations, growing political fragmentation within the European Union, instability in the Middle East, sustained conflict in Ukraine, and increased friction in Southeast Asia.

In the first half of 2025, ING conducted ad hoc risk assessments on significant geopolitical events for potential risk management measures if needed. Global trade relations Trade policy developments remained a key focus in the first half of 2025. The United States introduced broad-based global tariffs, affecting multiple sectors and countries, including key European and Asian exports. Recently, the United States and European Union have reached a trade agreement, ending a months-long standoff between two of the world's biggest economic partners. The deal is imposing a 15% import tariff on most EU goods. That is half the 30% import tax rate the US had threatened to implement starting on August 1st. Meanwhile, US-China trade relations remained tense, with both countries imposing successive rounds of tariffs before reaching a temporary de-escalation agreement in June. Although a major escalation was avoided, broader trade policy uncertainty persists and will continue weighing on economic activity and investor sentiment. This outlook has contributed to downbeat growth and inflation forecasts, market volatility and increased uncertainty over global trade. EU political fragmentation Political developments within the EU showed several member states experiencing political instability and shifts in electoral dynamics. In the Netherlands, the coalition government collapsed following the withdrawal of Party for Freedom (PPV) from the governing coalition, with efforts to form a new government to continue later in the year. European elections across members such as Germany, Poland, and Romania reflect shifting power dynamics and changes in political representation. These developments add uncertainty to domestic and EU-wide policymaking and may hinder coordination on fiscal policy, climate initiatives, and financial regulations. The war in Ukraine The war in Ukraine continued, with intensified military activity on both sides through new offensives and counterattacks. The prolonged conflict has strained military and financial support commitments from Western allies, with ongoing support for Ukraine remaining a subject of attention. The conflict continues to influence energy markets and oil price volatility, with increased risk of further sanctions affecting global trade and operational risk for businesses with exposures in the region. ING continues to monitor these developments closely as it proceeds with the planned exit from Russia. Exposure in Russia In March 2022, we announced a decision to