BlackRock assumed a loss of about $17 billion in Russian assets in the wake of the invasion of Ukraine. The amount was paid by the world’s largest asset manager to the Financial Times (FT) in balance to the impact of international sanctions implemented against Vladimir Putin’s regime.
The company explained that at the end of January, BlackRock customers held $18.2 billion in Russian assets. After the invasion, the asset manager stopped all asset purchases and assumed losses from strong devaluations (since there would be no sales). An official source told the Financial Times that the exposure was, on February 28, 0.01% of the global investment portfolio, about $1 billion.
The company – which manages more than $10 billion – is not the only company in the world suffering the impact of sanctions. For example, Pimco holds at least $1.5 billion in Russian public debt and $1.1 billion in credit and default swaps. Janus Henderson, Ashmore, or Western origins are also exposed to Russian debt.
US bank Goldman Sachs announced Thursday that it will close its operations in Russia, becoming the first major Wall Street bank to announce such a decision after the invasion of Ukraine. “Goldman Sachs is closing its business in Russia in compliance with regulatory and licensing requirements,” the bank said in a statement. “We are focused on supporting our customers around the world in managing or ending pre-existing commitments in the market and ensuring the well-being of our employees,” he added. In its annual report, the Bank indicated that it had exposure to a credit risk of $650 million against Russia. Soon after, JPMorgan Chase confirmed that it was actively working to reduce its business in Russia.
At Morgan Stanley, the losses have already led to layoffs. According to Bloomberg, citing anonymous sources, a trader at Morgan Stanley will abruptly leave the bank after incurring tens of millions of dollars in losses from market turmoil. Hamza Al-Hasani, who belongs to the equity division of Bank of New York, is leaving due to failed bets, which resulted in more than 50 million realization.
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