British banking firm HSBC has signed an agreement to divest its operations in Russia to Expobank for an undisclosed sum.
HSBC’s operations in Russia include a corporate banking business that offers a wide range of lending and investment banking services to domestic and multinational customers.
HSBC spokesperson told Reuters: “Following a strategic review, HSBC has signed an agreement to sell 100% of its participating interests in HSBC Bank (RR) to Expobank JSC.”
The deal is seen as important, as Russia prepares to block foreign banks from selling their businesses in the country, in retaliation for restrictions imposed on Russian banks operating abroad.
The completion of the transaction would indicate HSBC’s formal exit from Russia. However, the closing of the sale is subject to receipt of regulatory approvals in Russia.
Russia’s central bank stated that it had not received any application requesting approval for the sale of HSBC’s business, reported Interfax.
HSBC representative told Interfax: “Conclusion of the deal is subject to approval by various regulatory bodies in Russia. As a result of the sale of this asset, HSBC Group will end its activities in Russia.”
In a separate development, Russia’s arbitration court has banned Swiss investment bank Credit Suisse from disposing of shares in its Russian units.
Credit Suisse operates in Russia through its subsidiaries Bank Credit Suisse, and Credit Suisse Securities.
The court also ordered to seize €10m from the Swiss bank after it failed to repay its loan to a bank which has been sanctioned.
Russian units of other foreign banks have started hiring new staff this month, to fill the vacancies of employees who left the country, reported Reuters.
Earlier this year, French lender Societe Generale agreed to divest its lending and insurance assets in the country to local lender Interros Capital.
