By Taras Rybak
Getting a banking job in Russia has become less of a cyclical fad and more of a permanent fixture.
The global economic crash following the collapse of Lehman Brothers in late 2008 has changed the game. Sovereign defaults and the boom and bust episodes in Russia pale in comparison, and seem to have become historical footnotes anyway.
Brazil, Russia, India and China have already contributed to 30% of global growth over the past eight years and are set to surpass the G7 group of leading economies by 2032, according to Goldman Sachs.
International banks know more than most that future capital markets growth is going to be generated by companies from the emerging markets sphere. Western players have been gradually increasing their headcounts in Moscow, although they can't match the cockishness of the domestic players.
Russia's VTB Capital said it will boost its headcount by 40% to 1,000 by the end of this year, while Renaissance Capital has already hired over 100 bankers, as part of its 200-250 build out in 2010.
Different banks are looking for different skillsets.
Repatriating Russian financiers are valued for their language ability by the western institutions keen to understand the enigmas of Russian business. But, the Russian brokers particularly value western specialists in niche areas such as derivatives, or sales traders with excellent client relations. So if you speak the language, have the blend of experience in Western and Russian markets then your chances to land a good job in Russia will be quite high.
If you don't speak the language and never worked in / with the region before, then finding a job will be more challenging. However, there’s a high demand for experienced investment bankers, FI / equities sales people, as well as FX&IR sales where some of the Russian players are trying to build up their capabilities.
Some banks chose to tiptoe into Russia by establishing bases from London. Credit Agricole SA’s equity brokerage unit CA Cheuvreux is currently hire a team of analysts and sales traders to cover Russia and the EMEA region from the British capital. Societe Generale, its French rival, is believed to be doing likewise. Russian banks are also expanding sales and distribution hubs in global financial centres around the world in New York, Singapore and the Middle East.
Where once US banks were the gold standard for financial services jobs, Russian banks are in a strong position to compete for that title in future.
This comment first appeared on EFinancialCareers.
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I’ve been the Vice Chairman of 3 Russian banks, and never felt unsafe. Most Russian banks can not come close to international standards because they have little, if any, international managers.