Russia Exposure Leaves BlackRock with $17bn in Losses

BlackRock Losses in Russia $17bn
BlackRock Losses in Russia amount to $17bn

BlackRock, the largest asset manager in the world has taken a $17 billion loss due to its exposure with Russia.

The Russia-Ukraine conflict is affecting global markets and BlackRock is no exception.

Clients held more than $18.2bn in Russian assets at the end of January.

Following worldwide sanctions imposed after Russia invaded Ukraine have made the vast securities unsaleable.

How is BlackRock managing?

Let’s discuss it.

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BlackRock suspends purchase of Russian assets

BlackRock losses in Russia
BlackRock losses in Russia

While BlackRock never opened an office in Russia, it invested in Russian stocks for its clients that wanted exposure to the market.

The world’s largest asset manager suspended the purchase of Russian assets on February 28th.

BlackRock disclosed losses in Russia had only fallen to less than 0.01 percent of their total AUM.

A spokesperson said the total value was about $1 billion on February 28th, when the markets were effectively frozen.

However, BlackRock’s losses in Russia depicts just how large the asset manager is.

They hold roughly $10 trillion in assets globally.

A $17 billion loss could wreak havoc for majority of asset managers but for BlackRock it’s only a scratch on the surface.

Related: Ukraine: These famous brands have pulled out from Russia

What assets did BlackRock lose in Russia?

BlackRock Russia Stock Market

According to sources, BlackRock declined to give a breakdown of its Russian securities or details about which funds had losses.

However, the asset manager did mark down the value of its largest Russian exchange traded fund.

ERUS has gone from about $600 million at the end of last year to a total value of less than $1 million.

BlackRock has suspended trading and waived the management fees on all of its Russian ETFs as well as an emerging Europe fund that was heavily exposed to Russia.

BlackRock chief executive and chairman Larry Fink has praised sanctions and condemned Russia’s invasion.

“Capital is being pulled by investors and companies that have long done business in Russia,” he wrote in a LinkedIn post.

“We stand with the Ukrainian people and condemn the brutal aggression of the Russian government,” Fink added.

Other financial institutions who have been exposed to Russia include Citigroup ($10 billion in losses) and Morgan Stanley ($16.6 million in losses)

Related: Ukraine: These famous brands have pulled out from Russia

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3 Comments

  1. DANIEL BROOKS

    Maybe they should have invested in America instead of Shorting America !

    • Frank Nez

      💯💯💯

  2. Frank Nez

    Let’s start a discussion!

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