HSBC will stop servicing transactions to Russia and Belarus in October

The HSBC banking group (Hongkong and Shanghai Banking Corporation, based in London) will stop servicing transactions of its corporate clients to Russia and Belarus in October. This is stated in a notification sent to clients from the group’s divisions. HSBC’s letter is quoted by the agency Nikkei Asia.

The letter reveals that banks in the HSBC group will stop processing commercial payments from October 27, amid an “increasingly challenging regulatory environment”. The group said the decision was made to “minimize the operational impact on Russia and Belarus, even if such activities are permitted by applicable laws and regulations.”

Representatives of HSBC, in a conversation with Nikkei Asia, noted that they expect to complete the sale of their Russian business to local lender Expobank this year. The deal is currently awaiting local regulatory approval. HSBC stressed that the restrictions on money transfers are not related to the upcoming sale.

In October 2022 HSBC notified Russian clients on the suspension of the provision of retail investment services. The bank explained that this decision was made due to EU sanctions.

Hong Kong authorities spokethat they do not plan to support unilateral sanctions of Western countries, but a sharp reduction in Russian capital is being recorded in the city. In the first half of 2022, according to the Hong Kong Monetary Authority, banks reduced the volume of total business with Russia by approximately 3.24 thousand times – from $330 billion to $100 million.