- Global banks scaling back Russian operations amid recession
- Lissovolik follows analysts opting to join state institutions
Deutsche Bank AG’s former chief economist in Moscow will join a development lender run by six ex-Soviet states as the German firm winds down most of its operations in Russia, where a recession is hitting profits in the financial industry.
Yaroslav Lissovolik, who worked at the International Monetary Fund prior to joining Deutsche Bank in 2004, became chief economist at the Eurasian Development Bank starting this week, its spokeswoman, Olga Fisenko, said by phone Wednesday. Lissovolik was dismissed in September after Deutsche Bank decided to close its corporate and securities business in Russia to cut costs.
The retrenchment by global banks has pushed analysts from firms including HSBC Holdings Plc and Morgan Stanley to opt for jobs with state institutions. Companies from Deutsche Bank to BNP Paribas SA are cutting back Russian investments amid the country’s first recession since 2009. Royal Bank of Scotland Group Plc on Monday agreed to sell its Russian banking assets to a local lender.
On an annual basis, investment banks earned 62 percent less in Russia this year through Sept. 7 for the the lowest total in 13 years, data from Freeman & Co. show. Local firms accounted for more than half of those fees for the first time.
Lissovolik, with degrees from Harvard University and the London School of Economics, follows HSBC’s Alexander Morozov, who joined the Bank of Russia in September to lead its research and forecasting department. Alexander Gromov also left BCS Financial Group in August for the central bank.
The Eurasian Development Bank was established in 2006 after an agreement between Russia and Kazakhstan, according to its website. Armenia, Tajikistan, Belarus and Kyrgyzstan later became its full members. The lender, whose head office is in the Kazakh commercial capital of Almaty, says it works to promote economic growth and trade among its members and support integration in Eurasia.