British bank HSBC has left russia

UK bank HSBC has sold the russian unit to Expobank for an undisclosed fee after two years of negotiations.

Expobank was subjected to US sanctions as part of large-scale restrictions on russia's energy and financial sectors after the start of full-scale aggression against Ukraine.

In June 2022, HSBC first announced an agreement to sell a 100% stake in HSBC Bank (RR) LLC to Expobank. However, in 2022, russia banned investors from countries that had imposed sanctions for the war against Ukraine from selling stakes in energy projects and banks without Putin's permission.

In September 2023, HSBC announced that it would stop commercial payments to and from russia and Belarus for business clients as sanctions were making it “increasingly difficult” to operate there.

HSBC's withdrawal from russia had been planned since February, when russian dictator Vladimir Putin authorized the sale of expobank's assets.

Expobank announced the successful completion of the deal, after which HSBC confirmed the transfer of ownership to the russian buyer.

“The economic property of HSBC russia has been transferred to Expobank. The transaction will be officially completed after the registration of ownership in the State Register of Companies,” HSBC said.

Expobank said that the institution will continue to operate, but under a new name.

Source: Reuters