BlackRock’s exposure to Russia has fallen by $17 billion since February, company data shows

People are seen outside a showroom where BlackRock is held in Davos, Switzerland January 22, 2020. REUTERS/Arnd Wiegmann

March 11, 2022

By Ross Kerber

(Reuters) – BlackRock Inc.’s total client exposure in Russia has fallen from $18 billion a month ago to less than $1 billion before Moscow’s invasion of Ukraine led to Western sanctions and the shutdown of the Russian stock market, according to figures provided by the asset manager on Friday.

A spokesman for the New York money manager said via email that the impact on clients “would depend on their initial asset allocation and the timing of their allocations to or from that market during the period.”

Morningstar data through Feb. 25 showed BlackRock had around $5 billion in Russia, alongside many major US wealth managers with investments in Russia.

BlackRock said last week it had suspended purchases of all Russian securities, saying Russian securities accounted for less than 0.01% of its $10 trillion in assets. Most of BlackRock’s remaining exposure is through index strategies.

BlackRock CEO Larry Fink said Wednesday that moves by Western companies to cut trade and financial ties mean “Russia is essentially cut off from global capital markets.”

“BlackRock will continue to actively consult with regulators, index providers and other market participants to ensure our clients can close their positions in Russian securities whenever and wherever regulatory and market conditions permit,” the spokesman said on Friday, per e-mail. Mail.

(Reporting by Ross Kerber; Editing by Diane Craft and Emelia Sithole-Matarise)