Lehman Brothers is planning to launch an operation in Moscow as it mulls a return to Russian investment banking after an eight-year absence.

Lehman took the decision to re-enter the Russian market following an off-site meeting of managers in the US. Richard Fuld, chairman and chief executive of Lehman Brothers, who endorsed the move, is previously thought to have opposed a move back to Russia because Lehman was one of several international banks to suffer when the Russian market collapsed in 1998. Lehman Brothers has a joint venture in M&A advisory with Russian investment bank Renaissance Capital and it serves its Russian clients from London. Investment banks are beefing up their Russian operations as part of expansion in central and eastern Europe. Several are focusing on Turkey, where Lehman is expecting to hire a team. Investment banks with an established presence in Russia are also recruiting staff.