The proposed buyer of HSBC’s Russia business has been sanctioned by US authorities, potentially complicating the British lender’s exit.
On Tuesday, US authorities issued new sanctions to over 100 individuals and entities linked to Russia’s war efforts in Ukraine. One of the entities named is Expobank – the proposed buyer of HSBC’s Russia unit.
«[The Office of Foreign Assets Control] also continues to target financial institutions located in Russia to limit Russia’s connections with the international financial system,» said the US Department of the Treasury in a statement.
2022 Deal
In June 2022, HSBC said it had agreed to sell a 100 percent stake in its Russia unit to Expobank. Earlier this year, it recorded a $300 million loss linked to the expected sale.
According to Expobank, the sanctions would not affect its operations.
«We have had time to prepare and take all actions for the comfortable and convenient work of our clients,» the Russian lender said, adding that credit cards issued in the country, including those by Visa and Mastercard, would continue working.
