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HSBC Bank (Russia)

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This article is about the bank in Russia. For the global HSBC Group, see HSBC. For other individual entities of the group, see HSBC Bank.
OOO HSBC Bank (RR)
Эйч-эс-би-си Банк (РР)
HSBC Holdings PLC logo
Company typeSubsidiary of HSBC Holdings plc
IndustryFinance and Insurance
Founded1996
Defunct2024
HeadquartersMoscow, Russia
Key peopleGregory Garnier, CEO
ProductsFinancial services
Websitehsbc.ru

OOO HSBC Bank (RR) (Russian: ООО Эйч-эс-би-си Банка (РР); commonly referred to as HSBC Russia) was a subsidiary of HSBC Holdings plc, headquartered in Moscow, Russia. The bank provided personal banking and corporate banking services. In 2024, Expobank acquired HSBC Russia.

History

HSBC established its presence in Russia in 1996, focusing primarily on corporate banking services to support international businesses operating in the country after the dissolution of the Soviet Union.

In 2009, HSBC Russia expanded its operations by launching retail banking services, opening its first retail branch in Russia with the aim of offering a comprehensive range of financial products to individual consumers.

In 2011, HSBC agreed to sell parts of its Russian retail banking business to Citibank as part of plans announced earlier in the year to focus on commercial and wholesale banking in Russia, citing the challenging economic environment and the need to focus on more profitable areas of its business. The bank closed its retail operations, sold four branches in Moscow and one in Saint Petersburg, and reduced its private banking presence to a representative office, while continuing to provide services to corporate clients. The gross asset value of the businesses to be sold was approximately 305.8 million Russian rubles as of March 2011.

In June 2022, amid increasing geopolitical tensions and economic sanctions following the Russian invasion of Ukraine, HSBC declared its intention to sell its Russian business. The bank sought approval from the Government of Russia for the sale, anticipating a projected loss of $300 million US dollars from the exit.

In February 2024, Russian President Vladimir Putin authorized the sale of HSBC's Russian unit to Expobank, a Russian lender owned by entrepreneur Igor Kim. The transaction was completed in May 2024, marking HSBC's full exit from the Russian market after nearly three decades of operation.

In November 2024, HSBC ceased processing all payments from Russia and Belarus for its personal banking customers, aligning with the broader trend of international banks withdrawing from Russia due to financial sanctions imposed after the invasion of Ukraine.

See also

References

  1. "HSBC opens first retail branch in Russia". Reuters. June 9, 2009. Retrieved 29 December 2024.
  2. "HSBC sells Russia assets to Citi in retail retreat". Reuters. June 14, 2011. Retrieved 29 December 2024.
  3. "HSBC to sell certain elements of its Russian retail banking to Citibank" (PDF). HSBC. Retrieved 29 December 2024.
  4. "Британский HSBC сообщил, когда планирует окончательно уйти с российского рынка". Banki.ru (in Russian). 30 October 2023.
  5. "Putin Allows Sanctioned Expobank to Buy HSBC's Russian Unit". 19 February 2024. Retrieved 29 December 2024.
  6. "HSBC completes sale of Russian unit to Expobank". Reuters. May 29, 2024. Retrieved 29 December 2024.
  7. "HSBC stops processing Russia payments for retail customers". Reuters. November 22, 2024. Retrieved 29 December 2024.
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