The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Russia’s bankers ride out the storm

After enjoying years of plenty, the country’s investment banks are facing up to the prospect of leaner times ahead. Guy Norton reports from Moscow on how they are looking to survive the economic downturn.

russia-main.gif

RUSSIAN OFFICIALS ARE nothing if not optimistic. Take this choice assessment of the prospects for the Russian investment banking industry from finance minister Alexei Kudrin. In early October, in an interview with Russian business daily Vedomosti, he charted the development in the relative fortunes of US and Russian investment banks in the following terms: "Five leading US investment banks are no longer what they used to be. Bear Stearns was sold, Lehman Brothers went bankrupt. Merrill Lynch was sold, Goldman Sachs and Morgan Stanley abandoned their status as investment banks because of the risks they had taken and because of the need to receive additional support from the Federal Reserve. Soon our Renaissance Capital may become the biggest investment bank in the world."

While the US investment banking industry has undoubtedly taken an unprecedented battering in recent months, there’s certainly no sense of Schadenfreude among the Muscovite investment banking community. After enjoying a golden earnings period in recent years on the back of a rapid rise in capital markets issuance and M&A activity, Russian investment bankers are under no illusions about the size of task facing them if they are to ride out an economic and market downturn in Russia that threatens to completely choke off the supply of lucrative mandates.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree