* Russia veteran Costello steps down
* Executives say JPM cements leadership in Russia
By Megan Davies and Melissa Akin
MOSCOW, April 26 JP Morgan's Russia head
Jeff Costello is to retire and deputy CEO and head of
investment banking, Yan Tavrovsky, will replace him, the bank
said on Thursday.
Tavrovsky rejoined JP Morgan in 2010 from Morgan Stanley
. He had previously worked at JP Morgan in Moscow and
London from 2000 to 2005.
"I was at JPM for five years - I left and came back - and
I'm very happy it was possible for me to take a greater role,"
Tavrovsky told Reuters.
"Importantly, JPM is not just about investment banking but
is about corporate banking and that is part of the excitement.
We have a tremendous opportunity to grow in each of our product
Costello, 50, senior country officer for Russia and Ukraine
and CEO of JP Morgan's Russian bank, joined JP Morgan in 2008.
He has lived in Russia since 1996.
"The plan when I joined in 2008 was to build out (the JPM
business in Russia), build out the existing products and get the
franchise to a market leadership position, and then replace
myself,' said Costello.
He will stay on as a non-executive director and will take
over as chairman of the board of the local bank subsidiary for a
"We now have a market-leading position across our businesses
- clearly in investment banking, while our sales and trading
business has become increasingly strong and a market leader in
the corporate space," said Costello.
JP Morgan competes in Russia with international banks such
as Citi, Deutsche Bank, Credit Suisse
, Morgan Stanley and Goldman Sachs, as well as
local players like VTB and Sberbank.
M&A and IPO activity has been lacklustre as euro zone debt
concerns and market volatility have hampered companies'
abilities to raise capital, however many bankers forecast an
increase in volume this year.
"The start of the year was slow but our expectation is that
activity will pick up in the second half of the year," said
"To an extent it will depend on market conditions and
conditions in Europe, but we will probably see an increasing
level (of deal flow) now there is more certainty on the
President-elect Vladimir Putin will be sworn in on May 7,
ending a political transition in which opposition election
protests shook investor confidence in Russia.
JPM advised Russian fruit juice and dairy products group
Wimm-Bill-Dann on its sale to PepsiCo. It has
relationships with Russian Railways, Gazprom and Sberbank and
was a bookrunner for internet group Mail.ru's IPO.
"We are very bullish on Russia," said Costello.