Russia has selected Barclays Capital, Citibank...

"The placement will mark Russia"s return to the international capital markets for the first time since 1998," the ministry said.

It also said its choice of banks had been determined by their "vision" and experience on the Russian market.

Russia"s national development bank Vnesheconombank"s (VEB) earlier selected Barclays, Citi, HSBC and Societe Generale as lead managers and ING Bank, VTB Capital and Troika Dialog as co-lead managers for its bond issue.

As a result, Barclays, Citi and VTB Capital will take part in both the placement of sovereign Eurobonds and VEB"s Eurobonds.

The Russian budget for 2010 stipulates foreign borrowing within $17.8 billion. However Deputy Finance Minister Dmitry Pankin said earlier the country would borrow less this year. He also said the Finance Ministry was considering issuing part of ruble-nominated Eurobonds and bonds with maturity in 30 years.

MOSCOW, February 5 (RIA Novosti)