business

Morgan Stanley's Lead Russian Oil Analyst Quits for Ministry Job

  • Pavel Sorokin will become adviser to Energy Ministry
  • Analyst joins peers fleeing to government amid economic slump

Morgan Stanley’s head of Russian oil and gas research, Pavel Sorokin, left the bank to run a unit advising the country’s Energy Ministry, joining an exodus from the financial industry amid Russia’s first recession since 2009.

“It’s a great opportunity to help drive positive change in the sector and establish a closer link with the investor community,” Sorokin said by phone from Moscow. He will run the Energy Industry Analytical Center, which will provide in-house research and advice to the ministry’s Energy Agency.

Sorokin, 30, joins a number of Russian analysts and economists moving to the government or state-related jobs as banks endure difficult times. The nation’s financial industry has been hurt by a combination of sanctions that limit borrowing, a weak ruble and the collapse in oil prices.

Constantine Cherepanov, a former analyst at UBS Group AG in Moscow, will join the analytical center as deputy head for oil and gas while Dmitry Bulgakov, formerly of Deutsche Bank AG in Moscow, will join as deputy head for utility and coal segments, Sorokin said.

The moves follow recent departures from HSBC Holdings Plc, BCS Financial Group and VTB Capital.

Industry exit

Alexander Morozov, who had been HSBC’s chief economist for Russia and the Commonwealth of Independent States from 2005, was appointed head of the central bank’s research and forecasting department in September. Alexander Gromov left BCS in August for the central bank. Vladimir Kolychev joined the Finance Ministry in May from VTB.

Banks have been cutting staff to deliver on pledges to trim costs. Deutsche Bank is closing its securities business in Russia, while Renaissance Capital, the investment bank controlled by Russian billionaire Mikhail Prokhorov, is shrinking its global workforce by at least 5 percent and reducing salaries.

The analytical center will be created within the Russian Energy Agency, a federal budgetary organization under the Energy Ministry, Sorokin said.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE