HSBC has issued an update on its Russian divestment, noting it still expects to complete the selloff of its Russian business in the first half of 2023. It is the most significant update on the progress of the sale since it first announced it had agreed to sell the division to local lender Expobank.

HSBC acknowledged it will end up taking a $300 million loss on the expected sale, when it reported its annual results for 2022.

In July of last year, the bank has said the deal was awaiting the approval of Russia’s government and its regulators. Shortly thereafter, Russian Deputy Finance Minister Alexei Moiseev said Russia was planning to prevent the sale of the Russian businesses of foreign banks.

However the British lender said Tuesday, the deal was still pending regulatory approval, although it offered no potential timetable on that process.

Following Russia’s invasion of Ukraine in February of last year, numerous multinational companies moved to exit their Russian operations. However the complexity of Russian law, and the fluidity of the Russian government’s enforcement of it has left banks among the slowest sectors to exit the Russian market, as uncertainty over what Russian regulations will permit slows the closure of deals.

Last July, a Russian court in Moscow examining the exit of Swiss bank Credit Suisse barred the bank from disposing of shares of its Russian unit, and then went on to order the seizure of 10 million euros ($10.7 million) from the Swiss creditor.

HSBC had operated a corporate banking business in Russia which proffered a range of investment and banking services to domestic and multinational customers.

When Russia entered Ukraine, it employed roughly 200 employees, according to statements from HSBC Chief Financial Officer Ewen Stevenson.