HSBC completed its departure from Russia and takes a new step in its process of reducing its presence in different markets around the world.
The bank HSBC transferred ownership of its Russian unit to Expobank in exchange for an undisclosed fee, both lenders said Wednesday. In this way, both companies put an end to nearly two years of negotiations and uncertainty and this operation marks the departure of the international bank from Russia and a new step in its process of reducing its presence in different markets of the world.
The HSBC exit from Russia has been in the air since February, when Russian President Vladimir Putin gave the go-ahead to the sale of assets to the private bank Expobank. The latter said that successfully completed the agreement and HSBC later confirmed that it had transferred ownership of the business to the Russian lender.
“The economic property of HSBC Russia has been transferred to Expobank“HSBC said in a statement. “The transaction will be formally completed once the transfer of legal title has been registered with the State Corporate Register.”
HSBC first announced in June 2022 that it had agreed to sell a 100% stake in the unit, HSBC Bank (RR) LLC, to Expobank.
Regulation delayed sale of HSBC unit in Russia
A 2022 decree prohibits investors from “unfriendly” countries – those that have imposed sanctions on Russia for its actions in Ukraine – from selling securities in energy projects and banks key without explicit presidential approval.
Expobank said in a statement that the unit will continue to operate, but under an unspecified new name.
The United States and the European Central Bank are increasing pressure on European banks to disengage from Russia. Austria’s Raiffeisen Bank International is the largest European lender operating in Russia, followed by Italy’s UniCredit. Another Italian entity, Intesa Sanpaolo is working to divest its Russian business.
Source: Ambito
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