Having a tough time paying back $71 billion of taxpayers' money, Royal Bank of Scotland Group Plc is in talks with JP Morgan to sell non-North American units of RBS Sempra Commodities LLP for about $1.7 billion.

While RBS will have some money to payback the government, the acquisition will help JP Morgan to expand its energy and metals trading units.

It is said, though, JP Morgan - the second biggest US lender, was initially in talks for the North American unit, but it backed down as it is unclear whether the Volcker Rule will ever become law.

The bank also felt the North American assets didn't fit with current JP Morgan energy-trading businesses.

The North American unit contributes 64 per cent of the revenues to the joint venture and if JPMorgan bags the rest of the North American business, the most likely buyers would be Sempra, which has 49 percent in the JV.

JP Morgan has been expanding its commodities operations, buying Bear Stearns' energy business in 2008 and UBS AG's global agriculture and Canadian commodities divisions.