Swedes Open Bank in Moscow.

(From The Moscow Times)

Svenska Handelsbanken, one of Scandinavia's leading banks, has announced Tuesday the start of operations in Russia, the latest in a string of foreign lenders to enter the market.

Handelsbanken's Moscow subsidiary, the first in Russia by a Scandinavian bank, will have charter capital of 45 million euros ($55.5 million) and will tailor mostly to Scandinavian and British corporate clients. It plans to move into retail banking in two years, the Swedish bank said.

"For our main customer group, the Scandinavian and UK corporate clients, Russia is becoming an increasingly interesting market," Lars Gronstedt, the bank's CEO, told reporters. "It's important for us to follow our clients wherever they go."

There are over 1,400 Scandinavian and British companies present in Russia, according to the bank's estimates.

Handelsbanken, Scandinavia's No. 3 bank, has had a representative office in Russia since 1974. With total assets of $185 billion, it currently has over 450 branches in Sweden and 120 branches in other Scandinavian countries and Britain.

In addition to the Moscow unit, Handelsbanken plans to open an office in St. Petersburg, which will later become part of Moscow's subsidiary.