U.S. allows UK’s largest bank to sell its business in Russia

Photo: U.S. allows UK's largest bank to sell its business in Russia (Getty Images) © RBC-Ukraine (CA)

The United States has granted permission to the largest bank in the United Kingdom, HSBC, to sell its business in Russia, according to the notice published on the website of the US Department of the Treasury.

On Friday, the United States issued a general license allowing some operations with the Russian Expobank, “through 12:01 a.m. eastern daylight time, March 21, 2024”.

It is noted that Expobank proposed to purchase the HSBC unit in Russia, and the general license is expected to facilitate the long-anticipated departure of the British lender from the country.

The U.S. imposed sanctions against Expobank earlier this month.

About HSBC

HSBC is a British international commercial bank headquartered in London, and by market capitalization, it is the largest in Europe and one of the largest in the world.

Founded in 1865 in Hong Kong as The Hong Kong and Shanghai Bank to facilitate trade between Europe and China, later the name was changed to The Hong Kong and Shanghai Banking Corporation (HSBC).

International businesses exiting the Russian Market

After Western countries imposed sanctions against Russia, several foreign brands decided to sell their businesses in the country.

In September, it was reported that HSBC would cease commercial payments for business clients in Russia and Belarus.

Additionally, the Japanese retailer Uniqlo decided not to renew leases for all its stores in Russia. This move marked the company’s exit from doing business in the country.

Source: RBC Ukraine