When Russia went into decline, UBS decided to maintain its operations and wait for better times, unlike its rivals at Credit Suisse and Deutsche Bank. With the election of Donald Trump in the U.S., the Swiss bank is hoping for an improvement of market conditions.

UBS, Switzerland's largest bank, is getting more comfortable with its banking operations in Russia even as the European Union and the U.S. uphold their economic sanctions. «When sanctions were first introduced, we were a little more restrictive, but now we have more experience in how sanctions work so we can be a bit more open,» said Hendrik Geldenhuys, head of central and eastern Europe at UBS Wealth Management, in an interview with «Bloomberg».

The bank has investment-banking and wealth-management units in Russia. It recently has profited from hopes for an improvement of relations between the U.S. and Russia.

Pick-Up in Business

While banks such as Credit Suisse (CS) and Deutsche Bank pared their operations in Europe's eastern-most country, UBS maintained what it had and stuck to its guns during the recent economic contraction.

Russian equities and the country's currency have risen since the election of Trump on expectations that the two countries would be able to patch up their fraught relationship. The oil price, crucial for Russia's economy, gained after OPEC in November decided to reduce its output.

Participation in Deals

UBS profited from an increase in Russian bond and equity deals. It participated in the dollar bond offering of United Rusal, the sale of a Rosneft stake in an Italian refinery as well as a Swiss franc bond issue by Gazprom in November.

«If the new U.S. administration moves to normalize or improve relations with Russia, that’s something we’d obviously welcome,» Geldenhuys said. «But it’s still early days.»

Icing on the Cake

The bank hasn't included an easing of sanctions into its expectations for the company's business in 2017. Such a move would however be welcome on top of higher oil prices and an economic recovery.

UBS expanded its local wealth-management team, which is being managed by Ilya Solarev, and is now reaping the benefits with more rich Russians deciding to seek its advise.

Cautious, Yet Upbeat

UBS remains cautious despite the upbeat outlook. It doesn't accept any Russian state employees as clients at its wealth-management as they aren't allowed to keep assets abroad.

The bank has no plans to its fixed income trading to Russia. The trading business in Moscow is a sales desk and brokerage focused on equities and foreign exchange.