Jason Corcoran in Moscow.
Jeffrey Costello, chief executive of JP Morgan in Russia, is stepping into the investment banking breach following the surprise departure of bank’s rainmaker Natalia Tsukanova to work for the Kremlin.
JP Morgan said Costello had taken over Tsukanova’s duties temporarily following her departure last month to take up a role advising the Russian government on it foreign acquisition plans.
Investment banking sources said Tsukanova had been tapped by Igor Sechin, deputy prime minister and energy giant Rosneft chairman, to advise the government on foreign acquisitions in the oil and gas sector.
“Tsukanova was with JP for twelve years and wanted to try something new. This was an offer she felt she couldn’t refuse,” said a banker close to the situation.
A Moscow spokeswoman for JP Morgan told EmergingMarkets.me Costello was taking over until a suitable replacement could be found. It was too early to say whether internal or external candidates will be sought.
Tsukanova’s investment banking team has had a great run over the past few years. Its bankers acted as joint bookrunner on the $10.7bn IPO of Rosneft and was one of the two international placement agents for Sberbank’s $8.8bn IPO. Its Moscow and London-based team has traded leading M&A adviser status in Russia with Credit Suisse over the past three years.
Russia’s capital markets have gone flat his year compared to the fizz of m&a last year. JP Morgan is the second leading adviser for the year to date, having advised on two deals worth $7.5bn. In 2008, JP Morgan advised on eight deals during the year worth a total of $18.1bn.
Costello was hired in March last year as JP’s first Moscow chief executive. He spent five years as chief executive of UBS Moscow-based investment banking joint venture UBS Brunswick until taking time out of the banking industry in 2004.
