Investment banking deal volumes in Russia rose almost 50 percent in 2016, with domestic advisors leading the charge, but continued sanctions and the economic contraction mean the industry remained a shadow of its former self.
According to Thomson Reuters data up to Dec. 14, equity capital market (ECM) volumes in Russia have more than doubled to$3.1 billion this year, while capital raisings in debt markets (DCM) rose by a quarter and the value of takeover deals (M&A) involving Russian targets was up 65 percent at $36.5 billion.
Starting in 2014, sanctions limited access to international capital for certain Russian businesses, scaring away investors and spooking compliance departments at top banks. International banks can do deals but they have to ensure proceeds from capital raisings are not used for any purpose restricted by sanctions.
Russia's export-dependent economy sank into recession after it annexed Crimea in 2014 and took a hit from the sanctions which followed and a further blow from falling oil prices. But officials expect it to tip into growth next year.
The Western and retaliatory Russian sanctions are still in place but Russia is once again increasing in significance for some investment bankers, especially amidst speculation that the election of Donald Trump as president of the United States could result in the easing of sanctions.
Reference: Reuters
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