In the first direct investment by a U.S. bank in Russia since the Soviet Union broke up, Chemical Banking Corp. has joined Russian investors and three other U.S. financial firms in setting up a Moscow-based investment bank.

Chemical and its U.S. partners - American International Group Inc., Smith Barney, Harris Upham & Co., and Rothschild, Wolfensohn & Co. - will contribute half the bank's approximately $10 million in capital. American International, better known as AIG, will contribute $2 million and the other three $1 million each.

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