Putin grants HSBC approval to sell Russian unit to Expobank
MOSCOW (Reuters) -Russian President Vladimir Putin gave approval on Monday for HSBC to sell its Russian unit to privately-owned Expobank, paving the way for the British lender to extricate itself from the Russian market after months of negotiations.
HSBC said in June 2022 that it had agreed to sell a 100% stake in the unit, HSBC Bank (RR) LLC, to Expobank. Moscow has steadily tightened restrictions on foreign asset sales since then, with banks requiring Putin's approval for any deal.
HSBC and Expobank did not immediately respond to emailed requests for comment.
The decree raises the prospect of a full exit from Russia for HSBC, whose global business spans China and the United States, just before it is due to present to investors on Wednesday full-year earnings for 2023.
HSBC said last year it had taken a $300 million loss on the expected sale of its Russian business. Moscow demands discounts of at least 50% on foreign asset sales, and Western banks have found it particularly difficult to fully cut ties.
Monday's order said it was allowing Expobank to acquire 100% of the unit, owned by HSBC Europe BV.
The order cited an Aug. 5, 2022 decree signed by Putin, which banned investors from «unfriendly» countries — those that have sanctioned Russia over its actions in Ukraine — from selling shares in key energy projects and banks. That decree gave Putin the power to issue special waivers in certain cases for deals to go ahead.
HSBC, Europe's biggest bank, said in September it would halt commercial payments by business customers to and from Russia and Belarus, with sanctions making it «increasingly challenging» to operate there.
LIMITED IMPACT SEEN
The deal will have a negligible financial impact on HSBC, which has, since
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