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. Last Updated: 07/27/2016

Goldman, Sachs & Co. Reopen Moscow Office




Goldman, Sachs & Co. is opening a representative office in Moscow to expand its business with the Russian government and in underwriting and mergers advisory work.


The opening of the office, which will begin with about a dozen staff, comes two weeks after Goldman helped the Russian government raise $1.25 billion by selling Eurobonds. It comes four years after Goldman closed its Russian office because business dried up during a yearlong global bond slump.


Goldman's return comes as the Russian stock market reels from concern about the economy and the stability of the government. The equities market is down about 60 percent this year.


The return also comes as several of Goldman's Wall Street competitors try to break into the market amid concern they might fall behind established Russian financial services businesses once the market recovers.


"It's not the ideal way to enter, but if the product is good enough they will make it,'' said Mark Cooke, chief investment officer at Brunswick Capital Management, which invests only in Russia.


"Clearly they have enormous distribution power," he said.


Morgan Stanley Dean Witter & Co. opened an office in Moscow last month while Merrill Lynch & Co. is in talks to buy the Russian brokerage business of Regent Pacific Corp.


Former U.S. President George Bush was one of the speakers at the launching last night.