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British banking group HSBC is closing in on a deal with Expobank to sell its Russian arm as the war between Russia and Ukraine drags on.

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The talks are at an advanced stage, Bloomberg reported citing two unnamed sources, who added that the discussions are private and a deal is yet to be made.

An agreement would see another major bank existing Russia, which invaded Ukraine in late February this year.

In April this year, Societe Generale signed a deal with Interros Capital, which has ties to Russian oligarch Vladimir Potanin. The French group took around a €3.1bn hit on the deal.

HSBC quit the Russian retail banking market years ago and now caters to corporate clients in the country.

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As of June 2021, the bank’s Russian arm had around $1.4bn and employed 249 people.

HSBC stopped accepting new business in Russia after the war began and has taken a $250m hit in the first quarter from its operations there.

Backed by Russian entrepreneur Igor Kim, Expobank offers corporate, retail and other financial services with over 50 offices in Russian cities.

Other major international banks including UniCredit, Citi and Austria’s Raiffeisen Bank International and are weighing their future in Russia.

Earlier this week, media reports said that Expobank was also among those interested in buying the Russian arm of US lender Citi.

Meanwhile, another report said that Italy’s UniCredit is looking for a reversible deal for its Russian arm.