What sanctions? JP Morgan and Goldman Sachs among the top three investment banks in Russia

Someone forgot to tell us that Russia is now capitalist. Remember Boris Yeltsin and American experts from Harvard and the Boston Consulting Group, who told the Russian what mergers, acquisitions and public equity? All right, at that time, we loved Russia. The big, bad Russian capital market is back and although today he is not as wild and rude as before, American firms again to peck at the bait. This time JP Morgan and Goldman Sachs were among the top three brokers in volume of transactions. This year they received more Agency and guarantee of remuneration than the last — and the year has just begun.

The Agency fee is that Carter Paige earned on the deal with Rosneft. Paige was in the headquarters of the trump adviser for international Affairs, and it is constantly cited as an example when talking about relationships, team trump with the Russians. It turns out that this is entirely legal and investment houses on wall Street would like to establish more such links, if they succeed.

Branch of Goldman and J. P. Morgan in Moscow as of April 20, headed the list of leaders on the deals this year. Transactions in which they participate, it offers securities, bonds and loans. Over the past 12 months the number of investment banking transactions have increased by 32% compared to the same period last year, reported by consulting firm from Madison Avenue Freeman&Co. These two widely known investment houses followed this trend throughout the year.

VTB Capital once again became the market leader. On April 20, its share in the total banking commissions on investment transactions amounted to 18%, or about $ 16 million. In the first three Goldman and Morgan appeared for the first time in five years, as reported by bne IntelliNews. JP Morgan this year is for VTB with a share of 11.4%, or about $ 10 million. Last year he was in sixth place.

“If you look at the near future after the sanctions, the market looks pretty strong, told bne IntelliNews Vice President Freeman & Co Nassif Jeffrey (Jeffrey Nassof). — Curiously, we see how Western banks even this year, make some big trades”. Goldman, Credit Suisse and Morgan Stanley a few months ago organized the IPO of the company “Detsky Mir”. “Children’s world” sells products for children.

Us investment banks last year were expelled from the Russian capital market due to some kind of sanctions imposed against Vladimir Putin. After a two-year voluntary hiatus due to US sanctions and the EU, Russia last year once again came to the bond market, checking demand. When the bats IPO and bonds parted, Russian issuers were cautiously watching foreign organizers, the fear of sanctions. American banks nervous not less.

Washington imposed sanctions against Russia in July 2014 as punishment for the support that she had engulfed Ukraine separatist movement. These sanctions are very specific and are targeted, but companies still remain cautious, because violators of us sanctions in the past very seriously fined. BNP Paribas was fined a record $ 8.9 billion dollars in banking transactions with the Iranians, which at that time went under us sanctions.

Sanctions of the USA against Russia forbids to create a joint venture for exploration of oil and gas fields, as well as to Fund drilling and prospecting works and to transfer technology. The United States has also imposed punitive measures against Russian banks, banning U.S. banks to receive money and to give loans to Russian financial institutions that fall under the sanctions. VTB Bank, which owns the investment company “VTB Capital”, included in the list of organisations against which Washington has imposed sanctions.

Sanctions do not extend to American companies from other sectors of the economy, as well as consulting services. Of course, the courts may interpret it differently, but American firms are allowed to mediate in the transactions with Russian companies. Those who are engaged in this business, believe that they do not violate the sanctions regime. Now, these were the two largest banks on wall Street that are closely associated with the administration of the trump.

Sources of Russian oil and gas industry, as well as from the financial services sector told me that a former adviser to trump Paige at the end of last year worked with the “Gazprombank” as a broker in the transaction with Rosneft for the sale of state shares in Glencore and the national welfare Fund of Qatar. Someone suggests that Paige brought the money offshore, to then transfer them to Trump as a gift for the lifting of sanctions. But those familiar with this deal people say that offshore accounts actually was for the British captains of business who have long-standing business ties with Russia. “Rosneft” and “Gazprombank” included in the sanctions list, but bargaining with them is not in the field of energy.

On the other hand, a joint venture between Exxon and Rosneft to conduct exploration of hydrocarbons in the Kara sea and on technology transfer came under strict us sanctions. As a result, Exxon has suffered losses in the amount of one billion dollars.

Included in the sanctions list of Russian companies engaged in the business of many investment firms.

In March, Gazprom organized the sale of bonds at $ 1.02 billion, for which demand among American and European investors turned out great. The buyers of these bonds essentially allow the company to borrow money. Leaders in this deal became JP Morgan, Deutsche Bank, Gazprombank and VTB Capital. In the same month, Gazprom has received another $ 750 million from the sale of dollar-denominated bonds. It was his first operation of this kind on the market after the illegal annexation of Crimea which drove a wedge in the relations between the Kremlin and Washington.

The total cost of primary and secondary placement of shares on the Moscow exchange this year amounted to 1.2 billion dollars, the highest figure for the last six years.