MOSCOW, Feb 17 (Reuters) - U.S. investment bank Goldman Sachs has appointed two heads of investment banking in Russia, according to an internal memo seen by Reuters.
These are new positions and show the bank's commitment to the Russian market where investment banks as a whole have had a modest increase in revenues over the last year.
Sergei Arsenyev and Dmitri Sedov will become co-heads of investment banking, the memo sent on Friday said. They will be working with Paolo Zannoni and Nick Jordan, co-chief executive officers for Goldman in Russia.
Arsenyev joined Goldman in 2000 in Russia and was focused on coverage of family offices and the government. Sedov joined in 2007 in the investment banking division and has focused on technology, media, telecoms, infrastructure, industrials and healthcare.
International investment banks can find Russia a tough market, where state-controlled VTB and Sberbank have big market shares.
Last year, VTB ranked No. 1 for investment banking with 12 percent of the fees, while Sberbank and JPMorgan tied for second place with nearly 7 percent and Goldman was seventh with 4 percent, according to Thomson Reuters data.
Total investment banking fees in Russia earned throughout 2013 totalled $805.5 million, up 3 percent from 2012, according to Thomson Reuters figures.
While equity capital markets issuance increased 8 percent last year, debt capital markets issuance fell 4 percent and mergers and acquisitions slumped 51 percent to its lowest annual total since 2009 when measured by Russian targets.
Goldman ranked second for Russian equity capital markets underwriting last year, according to Thomson Reuters data.
Goldman is among the banks organising the stock market listing of German retailer Metro's Russian cash-and-carry unit, sources familiar with the transaction have previously said. [ID nL5N0LC18Y]
Goldman Sachs declined to comment.