HSBC has agreed to sell its Russian unit to Moscow-based Expobank in hopes that the deal will not be blocked by local authorities over a new policy to prevent the sales of foreign banks’ businesses.
HSBC has agreed to sell 100 percent of its interests in its Russian business to Expobank, according to a «Reuter» report citing an emailed statement. Subject to regulatory approval, a completed sale would mark the bank’s formal exit from the Russian market.
HSBC’s Russian unit consists of a corporate banking business that services domestic and multinational clients. According to chief financial officer Ewen Stevenson, the bank housed around 200 people, as of the eve of Russia’s invasion of Ukraine on February 24, with around $15 million of revenue compared to total group revenue of $50 billion.
Meanwhile, Russia’s deputy finance minister Alexei Moiseev said last week that new rules would be introduced to block the sales of foreign banks’ businesses in the country. According to the report, HSBC’s deal was signed shortly before the announcement though it is unclear if the sale has been impacted.
