ho's Who?

RUSSIAN BANKS

Who's Who

A brief survey of some of Russia's leading banks

RUSSIA'S BANKING INDUSTRY is one of rapid growth and dynamic change.
Since it can be hard to know the players without a scorecard, we include a brief introduction to some--but by no means all--of the banks that foreign companies might considering using for trade services, advice and other services in the Russian market.

UNEXIMBANK

Not Russia's oldest commercial bank (dating only from 1993), Uneximbank, with RR 1 trillion (including US$400 million) of capital and more than RR 20 trillion in assets at the beginning of the year, is now one the five largest of Russia's non-State banks, and ranks 504th in the UK journal The Banker's list of the world's largest banks. Euromoney magazine also places Uneximbank among the country's most reliable financial institutions and the US Securities and Exchange Commission lists the Bank as an "eligible foreign custodian" for securities.

Being at the core of one of Russia's largest so-called Financial-Industrial Groups (FIGs, or conglomerates), the bank has played a key role in the restructuring of the Russian economy, including strategic investments and management participation in some of Russia's most important enterprises (e.g. Noriilsk Nickel and Sidanco), programmes which are also backed by the European Bank for Reconstruction and Development.

The bank is well-respected internationally and is able to raise funds internationally, through syndicated loans or merely on the security of its own currency bills. Deutsche Morgan Grenfell is acting as agent for the placement of these currency bills on the Euromarkets. These include short- and medium-term loans for financing of foreign trade transactions by the bank's customers.

TRADE FINANCE. According to Mr. Alexey Osenmuk, Deputy General Manager of Corporate Relations, a priority is the bank's correspondent network which now includes fifty of the largest foreign banks.

L/C confirmation lines total more than US$235 million (currency conversion and securities trading lines totalled US$280 and 270 million, respectively).

The bank has also been accredited by the national export credit insurance agencies of North American and European countries to the tune of lines totalling US$80 million (including US$30 million under the US Commodity Credit Corporation's GSM-102 programme) to stimulate cooperation in trade and project finance.

The Bank sees particular promise in the Asia-Pacific and has established a special division to develop business in the region, says Mr. Osenmuk, who also heads the Asian Department of the bank. The bank has a subsidiary in Switzerland, Banque Unexim.

INVESTMENT BANKING & FINANCE. As a primary dealer in short-term government bonds (GKO) and federal floating-coupon bonds (OFZ-PK), the bank has a major role in these ruble debt markets and also serves non-residents (through 'C'-type accounts, which were set up for foreign participants on the ruble bond market).

The bank deals in internal foreign-currency bonds (Minfins), Russian Government Eurobonds, Russia's foreign debts bonds, municipal bonds, debt securities of CIS and Baltic states, shares of privatised enterprises, etc.

DEPOSITORY OPERATIONS. Development of depository operations is another of Uneximbank's key strategies, continues Mr. Osenmuk. In 1996, the Bank received a "no action" letter from the US SEC, allowing US investment companies to deposit securities with the bank.

In 1996 the Bank signed sub-depositary agreements with the world's leading depository banks: Bank of New York, Bank of Boston, and ING Bank. By the end of the year, the bank's depository handled more than US$20 million of transactions daily.

INKOMBANK

Inkombank, set up in 1988, is now almost 10 years old, venerable by Russian standards. According to Dmitry Amvrosiev, Vice President, Director of International Relations, the bank has regularly been ranked among Russia's top banks and according to The Banker magazine it is now 662nd of the world's 1000 largest banks. In July 1997, IBCA rated Inkombank BB (long-term) and B (short-term). As of 1 July 1997, the Bank had asset of RR 20.4 trillion, profits of RR 749 billion, and shareholders' equity of RR 2 trillion.

INTERNATIONAL OPERATIONS. Inkombank has correspondent relations with 64 banks in 28 countries outside the former USSR, and has more than 200 no-account correspondent banks. Settlements with foreign banks are made within two banking days via SWIFT. Inkombank presently has access to credit lines from more than 50 foreign correspondent banks, totalling more than US$300 million, for the confirmation of its L/C and guarantee liabilities. The bank has, claims Mr Amvrosiev, a 25% share of Russia's documentary business. Inkombank also actively assists its client with trade contracts.

By July 1997, the value of the projects on trade financing implemented by the Bank and secured by foreign export credit insurance agencies exceeded US$34 million (more than half of which were secured by Germany's Hermes insurance agency).

Inkombank has overseas offices in Germany, Austria, Switzerland, Great Britain, China, India, Kazakhstan, Belarus and the Ukraine.

Inkomfinanz Grup AG, Inkom-bank's financial company in Zurich, finances trade and deals in debt of the former USSR. The subsidiary posted 1996 profits of SFR 1.5 million. Inkombank also has a very active branch in Cyprus [see main story and Russian Business & Trade Connections, March 1997].

Inkombank is authorised to service official Sino-Russian agreements and set up a rep office in Beijing [see Russian Business & Trade Connections, February 1997]. Inkombank has very close relations with the Bank of China and was the first Russian bank which established correspondent relations with the Export-Import Bank of China.

The 1997-2000 period will be one of expansion in the Asia-Pacific region. Inkombank has identified Hong Kong as a priority venue for this future expansion. It has recently established correspondent relations with HSBC and has announced its intention to set up a finance company there.

INTERNATIONAL ACCEPTANCE. During 1996-1997 Inkombank received three syndicated loans, totalling more than US$80 million and in August 1997, Inkombank became the first bank in Russia to receive a large international unsecured syndicated loan for a fourth time (US$115 million). The principal lead managers of this loan were the Deutsche Bank AG and NatWest Markets. The banks participating came from Europe, the Middle East, Korea, China and South Africa.

Inkombank has also received a credit line of US$10 million from the European Bank of Reconstruction and Development for the support of small- and medium-sized business. Inkombank was the first Russian commercial bank to issue Level 1 American Depositary Receipts (ADRs) and in April 1997, Inkombank entered the Eurobond market with a US$200 million issue.

ON THE CARDS. Inkombank is, says VISA International, the largest issuer of VISA Cards in Eastern Europe. The bank controls about 25% of the Russian card market. In 1996, the Bank began issuing EuroCard/MasterCard.

For two years, Inkombank has been the top seller of Thomas Cook and VISA travellers' cheques in the entire Eastern European Region, and has captured 80% of the Russian market.

INTERNATIONAL MOSCOW BANK

International Moscow Bank (IMB) was established in 1989 as Russia's first joint venture bank with foreign capital participation. The owners include such leading financial institutions as Vneshtorgbank, Banque Commerciale pour l'Europe du Nord, Bayerische Vereinsbank, Creditanstalt, Industrial Bank of Japan, Merita Bank, Promstroybank and Sberbank (the Russian savings bank).

According to the bank's current Chairman Victor Gerashenko, formerly Chairman of the Russian Central Bank, IMB ranks among the small group of best-performing institutions in the Russian banking industry. IMB posted 1996 after-tax profits of US$41.2 million, a 25% return on equity.

Although IMB traditionally operated largely in US$, it has recently developed ruble operations to support governmental policy aimed at strengthening the role of the national currency as well as taking advantage of the emerging ruble markets.

IMB's domestic clients (including subsidiaries of foreign firms) are spread across a number of industries: oil and gas, metals , engineering, foreign trade, construction, timber and pulp, retail trade and chemicals and petrochemicals.

IMB made US$317 million of hard-currency loans in 1996, at interest rates it calls "relatively low".

INTERNATIONAL TRADE. Given that IMB's main focus since its inception has been international payments and financing international trade and projects connected with international cooperation, many enterprises receive services related to foreign trade. Expansion of the correspondent bank network is one of the major objectives of the bank. IMB now has correspondent relations with more than 1000 banks in 93 countries outside the former USSR.

IMB's strategy has been to increase the volume of documentary operations (mainly export documentary credits) with such countries as Hong Kong (a 340% increase in 1996), Belgium (330%), France (240%), the Netherlands (230%), Great Britain (200%) and Japan (90%). IMB has established new country and bank limits for Egypt, Morocco, Turkey and for a number of countries in Latin America.

IMB has 32 different credit lines from foreign banks for financing imports: seven with German banks, five with French banks, two each with Austrian, Belgian and Spanish banks, as well as with individual banks from Slovakia, Thailand, the Czech Republic and Switzerland. IMB has four additional agreements with US banks to utilise credit lines under the GSM-102 programme for financing agricultural imports.

IMB was the first Russian commercial bank to offer documentary transactions. IMB has recently introduced discounted deferred payment letters of credit and, factoring. The bank greatly reduced its fees for L/Cs and collections last year to maintain its competitive advantage.

The national export credit insurance agencies of Russia's main trading partners have extended credit lines to IMB. These include CESCE (Spain), COFACE (France), Export Development Corporation (Canada), Export Credit Insurance Corporation (Hong Kong), HERMES (Germany), MITI (Japan), Oesterreichische Kontrollbank (Austria), US Eximbank (USA) and the GSM-102 Programme.

Reflecting the geographical scope of its clients' activities, IMB works actively with Western Europe, northern and central Africa (primarily Egypt and Zambia) and Asia (particularly India, Japan, Korea, China and Hong Kong).

In 1995, International Moscow Bank established a mutual payment mechanism in so-called 'escrow' dollars for settlements with India and clearing Indian rupees. In 1996, a new step was made by the successful implementation of a finance plan ensuring payments in 'escrow' dollars for goods delivered from India to third countries.

THE BANKER'S BANK. The gradual progress towards complete convertibility of the ruble has activated foreign banks' interest in IMB as a depositary of their increasing ruble funds and as settlement centre for their operations with Russian partners. Ruble accounts have been opened for banks from Austria, Belgium, Germany, Finland and Great Britain.

IMB acts as a sub-custodian in Russia for three non-resident banks. Many foreign financial institutions effect settlements of Russian government bonds through the Bank.

FOREIGN SUPPORT. IMB has received a total of US$60 million from the EBRD for financing Russian industrial enterprises and for financing the economic development program for the City of Moscow. In 1997, the bank received a US$50 syndicated loan for which Chase Manhattan was agent.

SECURITIES. IMB focuses on operations with domestic government securities (GKO, OFZ), operations in the emerging market of the Finance Ministry foreign currency bonds (MinFin and Taiga bonds), trading in stocks and other financial obligations of Russian companies. IMB was registered by the Central Bank as an authorised depository. The liberalising of Russia's financial markets for non-residents is raising significantly the activity of IMB's foreign clientele. The total volume of funds invested in GKOs by the Bank's foreign customers in 1996 exceeded US$600 million. The number of non-resident companies holding accounts with IMB accounted for 18% of the clientele base at the end of 1996.

TOKOBANK

Tokobank was established in 1989; its largest shareholders include, in addition to some of the largest Russian enterprises and financial institutions, the European Bank for Reconstruction and Development, the Singaporean trading company Amtel Exports.

With paid-up capital (as of 1 January 1997) of RR 8 billion and US$285.3 million, Tokobank is one of the largest Russian banks. Thomson BankWatch gave the bank the highest short-term and long-term ratings in Russia. According to The Banker magazine, Tokobank is 24th on the list of the largest banks of the Central and Eastern Europe.

According to Alexei Tchernychev, Advisor to the President, Tokobank was one of the first banks in Russia accredited by the World Bank and EBRD for participation in the FIDP. Tokobank is one of the leading creditors of the Russian economy. Loans into metallurgy, oil and gas, foreign trade, fishing industry and other sectors comprise 70% of its revenue-generating assets. 80% of loans are provided to borrowers in hard currency. The bank in 1996 extended more than RR 6.1 trillion in loans in 1996.

ON THE MONEY. Tokobank is one of the largest operators on the Russian foreign-currency banknote market. In 1996, Tokobank imported more than 30% of the total number of banknotes delivered to Russia. Last year, Tokobank sold almost US$10 billion of US$ banknotes.

INTERNATIONAL ACCEPTANCE. Letters of credit issued by Tokobank are accepted by leading international banks (which accept its unsecured guarantees) as well as by the leading international export-imports insurance agencies such as COFACE (France), HERMES (Germany), and ERG (Switzerland).

Tokobank offers bank guarantees, red clause L/Cs and stand-by L/Cs as well as plain-vanilla L/Cs. The bank maintains correspondent relations with 413 foreign banks. In 1996, Tokobank became the first Russian full member of the Institute of International Finance and a member of the International Chamber of Commerce which determines the order of maintaining documentary and settlement operations in international trade.

At the end of 1996, Tokobank received a one-year US$85 million syndicated loan from 22 American, European and Korean banks. Tokobank has also received Russia's first loan from Arab banks in Saudi Arabia, the UAE and Kuwait. Germany's DEG also extended to Tokobank a 5-year, DM20 million loan, approved by the German government, for financing Russian companies under a programme for assisting countries with a new market economy.

Tokobank is a shareholder of Ost-West Handelsbank AG (Germany) and Yapi Toko Bank (Russian-Turkish Joint venture) and has a rep office in Cyprus.

BANK MENATEP

Bank Menatep, founded in 1988, was arguably the first private commercial bank since the 1917 revolution and now forms the core of one of Russia's leading Financial Industrial Groups. Thomson Bank Watch, says the bank, has given it a long-term senior debt rating of B+, the highest possible rating for a Russian bank.

Menatep's headstart, says spokesman Pavel Erasov, has allowed it to establish an extensive correspondent network. Technology and quality control have allowed the bank to improve its international services and to drive down fees.

Menatep is one of the Russian banks with an operation in Cyprus.

DOCUMENTED LEADER. Menatep's turnover in documentary letter of credits totalled US$804 million in 1996. The bank has issued and participated in guarantees and stand-by L/Cs to the tune of an additional US$300 million. Export transactions totalled more than US$3.7 billion and client funds transfers exceeding US$4.9 billion, doubling 1995's figures.

Menatep claims total foreign credit lines of US$100 million for documentary business and has received US$15 million of guarantees from the US Department of Agriculture for projects to finance agricultural production.

In December 1996, Menatep secured a syndicated loan of US$25 million, organised by international banks Creditanstalt, Bayerische Vereinsbank and Berliner Bank.

SECURITIES. According to Natalya Galenko, Head of the Securities Department, Bank Menatep is also one of the largest traders in Russia and deals in a complete range of securities for both local investors and foreigners.

On 7 August 1997, Menatep's 1st level ADRs were traded for the first time on the Frankfurt Exchange. The Bank is now working now on similar listings in London and Sydney.

ROSSIYSKIY KREDIT BANK

Rossiyskiy Kredit Bank is, by any measure, one of Russia's largest banks and one which would be at the top of any list of banks a foreign company might use for operations and finance in the CIS.

YEAR OF GLOBAL EXPANSION. The bank says that "1996 was the year of Rossiyskiy Kredit's ascent on the global financial market".

Rossiyskiy Kredit has offices in Bahrain, Hungary, Vietnam, Switzerland and China as well as in several of the CIS countries. The bank has a correspondent network of 250 foreign banks, of which 60 had accounts.

INTERNATIONAL TURNOVER. Rossiyskiy Kredit made 1600 trade finance deals in 1996, for a total of US$400 million, a 150% increase over 1995.

The bank is also introducing new payment mechanisms such as deferred payment and post-export financing, all to help ease foreign trade. One example is US$18.8 million from ING Bank's Vienna office for pre-export financing for the Mikhailovsky mining and milling plant.

The bank is also pioneering the use of forfaiting (discounting Letters of Credit and guarantees)-1996's total of US$40 million was just a start.

REPUTATION AND SUPPORT. The bank's international reputation has allowed it to received syndicated loans and other unsecured financing and credit lines for documentary, FOREX and other purposes. One of the first Russian banks to receive a syndicated loan in 1996, by the end of 1996, Rossiyskiy Kredit had received more than US$800 million in financing from 70 different banks. The banks received a total of US$250 million in syndicated loans.

The bank has also been accredited by many of the world's export credit insurance agencies, including those of Germany, Denmark, Austria and Japan and works with the US GSM-102 programme.

The bank was also able to float a four-tranche US$150 million debt issue, underwritten by Banque Indosuez.

MOST BANK

According to spokesman Konstantin Zlobin, Most Bank, founded in 1991 (its General Licence, #1582, dates from 1993), is now among the top twenty Russian commercial banks, and among the top ten in terms of capital.

The bank is unusual in having a particular entrepreneurial heritage. It is part of the Most Group, which includes several of Russia's leading publications (including a joint venture with Newsweek) and television programs and was founded by Vladimir Goussinsky, one of Russia's original and best-known entrepreneurs. Mr. Goussinsky, who ran the bank until earlier this year, has been replaced by Boris Khait.

The bank's history reflects this heritage. From a modest start only six years ago with 25 staff, Most Bank is now one of the leading financial institutions in Russia with RR600 billion in equity (to be increased to RR 1 trillion this year) and 1500 employees. In 1996 alone, assets more than doubled.

Also somewhat unusually, retail banking is one of the bank's priorities. According to the Profile magazine, Most Bank is the 6th largest bank in term of individual deposits.

MOSTLY INTERNATIONAL. The bank's overseas correspondent network abroad consists of more than thirty leading banks from the US, Asia and Europe.

Most Bank, says Mr. Zlobin, offers a full range of international and documentary services. Credit lines extended to Most Bank by a number of foreign banks are used in settlements against confirmed letters of credit. The bank also works with guarantees issued by foreign banks in favour of Russian companies-some US$33 million of such guarantees were accepted by Most Bank last year.

The bank is a member of CEDEL international clearing settlements system and the Emerging Markets Dealer Association. Most Bank is twinned with the Bank of Austria in the FIDP programme.

MOSBUSINESSBANK

Mosbusinessbank claims to be the first Russian commercial bank to receive an international syndicated loan-US$20 million received in October 1995 from a syndicate headed by Union Bank of Switzerland. The bank has since received other international finance, including US$120 million so far this year.

INTERNATIONAL OPERATIONS. According to Viktor Bukato, President, the Bank pays particular attention to its relations with foreign banks and international financial institutions. The Bank maintains correspondent relations with 238 foreign banks. Several foreign banks, including Cariplo, Standard Chartered and ABN-AMRO have granted Mosbusinessbank credit lines for documentary operations.

In April 1997, the Swiss Government included Mosbusinessbank in the list of Russian financial institutions whose guarantees would be valid for exports of Swiss goods to Russia. Russian companies can therefore use Mosbusinessbank as a guarantor of credit received for imports of equipment from Switzerland.

The bank works closely with the International Financial Corporation and Private Foreign Investments Corporation.

Mosbusinessbank is also active in the banknote market, where it is one of only ten banks authorised to buy banknotes abroad. In 1996, the bank imported more than US$2.2 billion of foreign currency as banknotes.

SUPPORT FOR MANUFACTURING. The EBRD provided the bank with the first US$10 million tranche for a 12-year loan to modernise production facilities at Karelya pellet and Tomsk tools factories. Another EBRD US$11.9 loan was extended within the programme on supporting small businesses in Russia. Mosbusiness bank implements this programme through branches in Yekaterinburg, Novosibirsk, St. Petersburg, Tomsk and Tula. The Bank will soon extend this programme to Nizhny Novgorod and Omsk. Mosbusinessbank also participates in the FIDP programme.

TORIBANK

According to President Andrei Zhelamsky, Toribank, established in 1991, marched up the rating table for 76th Russian bank by assets at the beginning of 1996 to 28th one year later with assets of RR 3.5 billion-as of 1 July this year, assets had climbed to RR 4.4 billion). Toribank participates in numerous international programmes, including the FIDP, EBRD programmes for support of Russian enterprise and trade facilitation and America's GSM-102 programme.

Not merely content with opportunities at home, Toribank has begun dealing in the bonds of a number of other emerging markets, such as Bulgaria, Argentina, Brazil and Ecuador, both on its own account and on behalf of clients. The bank estimates its open position in such securities to be US$70 million.

INTERNATIONAL RELATIONS. Toribank's correspondent network includes 81 foreign banks. FOREX operations are a top priority, says the bank. Toribank has received lines from several leading foreign banks (the Bank of New York and Bank of Austria among them). SECURITIES. Toribank also deals extensively in Russian hard-currency bonds (Minfins and Euro Bonds) and cooperates with many foreign counter-parties. The Bank also deals in the shares of major Russian corporate issuers and is a member of PAUFOR, the association for participants in the Stock market.

ELBIM BANK

Elbim Bank, founded in 1990, handles both rubles and foreign currency for both domestic and foreign clients.

According to Sergey Morozov, Chairman of the Board, the bank has made an effort to comply with international standards, undergoing International Accounting Standard audits for the past three years. Price Waterhouse is the current auditor.

The bank has ten branches in Moscow and one in Novorossiisk, as well as 40 exchange offices and an ATM network.

INTERNATIONAL NETWORK. Elbim Bank has correspondent relations with 33 banks from 18 countries in order to carry out international settlements promptly and efficiently. These include leading banks in the USA, the UK, France, Austria, Germany, Switzerland, Italy, Japan, Sweden, Ireland, Israel and South Africa. The bank has representative offices in the London and Pretoria.

MORE CARDS. Elbim Bank was also one of the first Russian banks to become a full member of the MasterCard International and Europay International payment systems. In 1996, the bank opened its own payment processing centre (certified by Europay). The bank itself issues Eurocard/MasterCard credit cards and Cirrus/Maestro debit cards. The bank is working with MasterCard International and Europay International to bring other Russian financial institutions into the network and can act as their guarantor. The Bank has also been working with American Express to distribute American Express Cards since 1995.

Elbim Bank both buys and sells hard currency Thomas Cook/MasterCard, American Express, Visa travellers' cheques and Eurocheques (as well as cash). The bank has been a major foreign exchange dealer on Russia's FOREX cash market since the beginning of 1993. As a means of non-cash settlement, the bank developed and implemented ELBIM BANK Freely Convertible International Multicurrency Debit Cheques (IMD-cheques) which have been patented, and accepted by banks, in an increasing number of foreign countries as well as Russia. IMD-cheques denominated in US$ are now used, says the bank, for domestic settlements between local companies, by Russian and foreign businessmen while conducting export-import operations and are also used for settlements by the Russian Stock and Commodity Exchange. The value of IMD-cheques issued in 1996 totalled more than US$100 million and RR 30 billion.

CONVERSBANK

Established in 1989, a good number of Conversbank's employees come, says bank spokesperson Eugenia Mamsurova, from Vneshekonombank. The bank is, as is names implies, involved in the financing of conversion projects, i.e. the conversion of military enterprises to civilian businesses. The bank is also involved in Russia's nuclear industry.

Conversbank also deals in the securities' markets, to the tune of RR2.9 trillion in 1996.

INTERNATIONAL TRADE. Ms. Mamsurova adds that many of the bank's clients export and Conversbank finances their international trading activities. Viktor Mikhailov, the Minister for nuclear industry (MINATOM) has predicted that Russia's nuclear export will double in 1998.

Conversbank's correspondents are the leading banks of Hong Kong, Japan and Europe. Conversbank has also recently begun to participate in the syndicated loan market and in August received its first such loan for US$21 million. Banque Nacionale de Paris's leading role in this loan was, according to Ms. Mamsurova, one of their first times BNP (Conversbank's "twin" under the FIDP programme) had taken such exposure to a Russian bank. The funds are used for financing Russian industry.

MODERN METHODS. Conversbank, says Ms. Mamsurova, pays considerable attention to modern banking methods and technologies and has installed a French-developed banking system. Phone banking is another recent addition to the bank's portfolio of capabilities.

ALFA BANK

According to spokesman Dmitry Sherbakov, the Alfa Bank was named Best Russian Bank in April 1997 Euromoney magazine. Merrill Lynch concurred, listing Alfa bank as one of the three most promising Russian banks in its December 1996 banking survey.

INTERNATIONAL OUTLOOK. Alfa Bank has a particularly international outlook, perhaps because it is one of the few Russian banks with significant foreign shareholders. The bank's London rep office is headed by a Western banker.

From high finance to trade finance. Alfa Bank is one of the key managers of Russia's Eurobond issues, including 1996 US$1 billion tranche, led by JP Morgan and SBC Warburg-the first such bonds issued since the 1917 Revolution-and the 1997 7-year DM 2 billion issue, led by Credit Suisse First Boston and by Deutsche Morgan Grenfell.

The bank attracted its own US$40 million syndicated loan, arranged by Morgan Stanley. The bank's correspondent network is a suitably international list of blue-chip banks from North America and Europe. The Bank is also a member of Europay, SWIFT and the international network of factoring companies.

Alfa Bank guarantees have been accepted by Germany's HERMES export insurance corporation.

FAR EASTERN BANK

Since the opening of branches for some of the leading Moscow banks, the banks in the Russian Far East no longer have the field to themselves.

Far Eastern Bank, however, has carved itself out a niche as a leading-perhaps the leading-regional bank. Like its competitors back in Moscow, it has relations with many of the world's leading banks; however, Far Eastern Bank, which now has branches in several cities of the Russian Far East differentiates itself through its expertise in the regional market. [For more information on Far Eastern Bank and the Russian Far East in general, please see Russian Business & Trade Connections. May, 1997.]