21 Jul 2022 19:35

Russian Central Bank hasn't yet received request for purchase of HSBC's Russian subsidiary, deal not under consideration

MOSCOW. July 21 (Interfax) - The Russian Central Bank has not yet received a request for the purchase of the Russian subsidiary of the United Kingdom's HSBC, and correspondingly, the regulator is not currently studying the possibility of such a deal, the press service for the Central Bank told journalists.

"By law, any transaction to acquire over 10% of any lending institution requires the approval of the Bank of Russia. An application on the acquisition of HSBC's Russian business has not been submitted to the Bank of Russia. Thus, the Bank of Russia is not currently studying the possibility of concluding such a transaction," the press service said.

HSBC said earlier that it had signed an agreement to sell 100% of its Russian subsidiary HSBC Bank to Expobank. Reuters was the first to report this. HSBC said later that the deal still requires the approval of a number of Russian regulators. "Following a strategic evaluation, HSBC signed an agreement to sell 100% of HSBC Bank to Expobank. 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," a representative of HSBC told Interfax. Expobank declined to comment.

This deal, if it is concluded, would herald another international bank leaving the Russian market following the start of Russia's special military operation in Ukraine. France's Societe Generale sold its subsidiary Rosbank to Vladimir Potanin's Interros in May. PPF Group sold controlling stakes in its Russian subdivisions to a group of Russian investors as the first part of a deal in June, including HCF Bank.