Firms suffer 67% slide in fees over Ukraine crisis

Investment banks in Moscow led by VTB Capital, Sberbank CIB and JPMorgan endured a 67% slide in fees so far this year as the Ukraine crisis brought threats of stiffer U.S. and European sanctions.

Bloomberg reports that bankers collected $108m on Russian deals through April 20, compared with $325m a year earlier, according to data from Freeman & Co.,a consulting firm.

The slump included some of the most lucrative segments, with fees from mergers and acquisitions falling 33% to $46m, Freeman reported. Income from syndicated loans plunged 88% to $13m, bond fees shrank 76% to $28m and equities tumbled 24% to $21m.

'The reality is that 2014 is probably already a lost year', Chris Weafer, a partner at Moscow-based Macro Advisory and former chief strategist at Sberbank CIB, said in e-mailed comments. 'The second quarter is likely to be worse than the first quarter as the big international investment funds stay away from Russia until the political risk is a lot clearer'.

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Moscow Bankers Sees Fees Slide 67% as Ukraine Crisis Grows

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