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Citigroup’s Kan, Darakov Said to Leave, Expanding Russian Exodus

Citigroup Inc.’s (C) Moscow-based equities head Igor Kan and sales chief Anatoly Darakov are leaving the bank, according to three people with knowledge of their departures.

Kan joined Citigroup in 2010 after 15 years at Morgan Stanley, where he had worked his way up to deputy chief executive for Russia. He is considering a move to Rosneft Bank, the financial arm of Russia’s biggest oil producer, which hired three former Morgan Stanley executives last year, according to the people, who asked not to be named because his plans to leave haven’t been made public.

Kan and Darakov each declined to comment when contacted on their mobile phones, as did Denis Denisov, a Citigroup spokesman. Rosneft Bank’s Walid Chammah, former chairman of Morgan Stanley’s international business, declined to say whether an offer had been made to Kan.

U.S. and European investment banks have been retreating from Moscow because of falling revenue and reduced margins. ING Groep NV, the biggest Dutch financial services company, said last month it will close its Russian equities unit, following Italy’s UniCredit SpA, which said in June it would shutter its Russian securities operation. Citigroup was the seventh-biggest arranger of Russian equity sales last year and in 2010, down from third in 2007, according to data compiled by Bloomberg.

Photographer: Andrey Rudakov/Bloomberg

U.S. and European investment banks have been retreating from Moscow because of falling revenue and reduced margins. Close

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Photographer: Andrey Rudakov/Bloomberg

U.S. and European investment banks have been retreating from Moscow because of falling revenue and reduced margins.

Ian Colville, head of equity sales Citigroup in Moscow, left the bank in November after two years in the position. Will Hammond, a senior Moscow equity salesman, left in July as part of the group’s drive to eliminate jobs and lower costs. A year ago, Citigroup cut Moscow research chief Mikhail Seleznev, sales trader John Heisel and equity traders Alexander Zorov and Sergey Akimov.

Chammah, Rair Simonyan, a former Morgan Stanley Russia chairman, and Elena Titova, a former Morgan Stanley Russia president, were joined at Rosneft Bank, a unit of state-run OAO Rosneft, by 10 support staff from the international bank’s Moscow office.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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