Goldman Sachs and Citigroup are among securities firms that have seen Russian investment banking commissions evaporate this year as sanctions and the country’s economic slump bring business to a halt.
Bloomberg News reports that banks collected $70m advising on Russian mergers and securities sales through May 31 compared with $178m in the same period last year, according to data from Freeman & Co., a New York consulting firm.
Deutsche Bank, the biggest foreign investment bank in the country, earned $1m down from $16m a year ago, while UBS, Goldman Sachs and Citigroup saw fees drop to zero in the period.
It’s 'about as bleak as you would expect', Jeff Nassof, a vice president at Freeman, said in e-mailed comments. '2014 was hardly a banner year and 2015 is currently on pace to be the worst year for Russian investment banking since 2001'.
Bond sales in foreign currencies and initial public offerings have virtually disappeared as international securities firms and investors avert Russian risk.
To access the complete Bloomberg News article hit the link below: