MOSCOW, June 18 (Reuters) - The Royal Bank of Scotland (RBS.L) plans to open an investment bank in Russia jointly with Moscow-based Renaissance Capital bank, a banking source told Reuters on Monday.
“There is work going on to create a joint bank. RBS plans to open a Russian subsidiary which would deal with investment business. It’s planned that the bank will be owned 50/50 by RBS and the investment firm Renaissance Capital,” the source said.
He said the bank could start operating as early as the beginning of 2008. RBS would gain a marketing platform for its investment banking services in Russia and Renaissance Capital would be able to offer its clients a wider range of services.
“This is a strategic alliance. Renaissance Capital could become a really global bank in Russia, but it’s also a plus for RBS because it was doing virtually nothing in Russia before,” the source said.
In January RBS and Renaissance began offering currency, debt and interest rate derivatives to government, corporate and institutional clients in Russia who were looking for ways to cut financial risk.