Merrill Lynch gets Russia brokerage license

MOSCOW (Reuters) - U.S. Merrill Lynch (NYSE:MER - news) has received a brokerage and dealing license in Russia, the country's market regulator said on Wednesday amidst a race among investment banks to capitalize on the Russian boom.

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The Russian Federal Financial Markets Service said in a brief statement that the license had been granted to Merrill Lynch Securities, the bank's Russian subsidiary.

Merrill last year hired Sergei Aleksashenko, a former first deputy head of Russia's central bank, as a managing director in Moscow. Aleksashenko had also worked as deputy finance minister and deputy chief executive of major Russian industrial group Interros.

Russia has become the darling of investment bankers, who are pulling in big fees for advising on a flood of initial public offerings, borrowings and takeovers by Russian companies.

The bull market has been driven by an economic boom now into its eighth year on the back of high oil prices and soaring consumer demand.

Many banks left Moscow in disgust after the August 1998 domestic debt default and rouble devaluation sent volatility through world markets, losing major banks billions of dollars.

Citigroup (NYSE:C - news), Goldman Sachs (NYSE:GS - news), ING (ING.AS), Credit Suisse (CSGN.VX), Morgan Stanley (NYSE:MWD - news) and Dresdner, a unit of Allianz (ALVG.DE), have all expanded their Moscow offices over recent years.