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 Russian bankers dismiss their employees in London due to sanctions

Russia’s biggest lenders are scaling back their London investment banking ambitions as sanctions curb deal-making and deter clients from trading with them.

Censor.NET reports citing Evropeiskaya Pravda

OAO Sberbank, the country's largest lender, recently cut seven bankers in its London office, reducing staff there to about 40. On Wednesday it said it will also cut management roles in response to the economic slump.

VTB Group, the country's second-biggest lender, continues to reduce personnel in London after cutting 55 jobs in Europe last year, starting off 2015 with a workforce of 425.

Even some Russian lenders not sanctioned are retrenching. Alfa Bank, the firm backed by billionaire Mikhail Fridman, has cut headcount in the British capital after shuttering its New York office. Otkritie Financial Corp., Russia's fifth-largest lender, cut staff at its London brokerage unit in April.

Read also: Culprits in the Donbas troubles are the ones who imposed sanctions on Russia, Putin says

"I'm not surprised big U.S. and European funds won't trade with Sberbank and VTB," Tom Adshead, chief operating officer for the consultancy Macro Advisory in Moscow and a former portfolio manager, said by phone.

 
 
 
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