HSBC Completes Russia Exit
(4 June 2024 – Russia) HSBC has completed the transfer of ownership of its Russian business to Expobank, ending two years of negotiations.
HSBC has completed the sale of its Russian business unit to Expobank, for an undisclosed fee, announced by the two lenders last Wednesday. The British bank’s exit from Russia has been in the works since June 2022 but had not been able to go ahead without express approval from the President of Russia, Vladimir Putin, which was received in recent weeks.
A 2022 decree had banned investors from such “unfriendly” countries, those of which had imposed sanctions on Russia for its actions in Ukraine and meant that foreign investors were restricted on selling shares in key energy projects or banks which were based in Russia without presidential approval.
“Economic ownership of HSBC Russia has been transferred to Expobank. The transaction will formally complete once the legal title transfer has been registered in the State Corporate Register.” HSBC said in a statement to the market.
Foreign banks still operating within Russia have been under intense pressure from the European Central Bank to speed up their exit plans, with some lagging behind or being held up by bureaucratic processes. Italian lender Intesa Sanpaolo is still working to dispose of its Russian business but is still being held up by such issues, despite receiving presidential approval to exit in September 2023.
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