Russia ends globalisation: Blackrock

The Russian invasion of Ukraine has put an end to the globalisation, Blackrock chairman Larry Fink says.

Friday, April 1st 2022, 6:37PM

Over the last three decades the world has seen connectivity between nations, companies and even people strained by two years of the pandemic.

It has left many communities and people feeling isolated and looking inward, he says in a letter to shareholders.

“I believe this has exacerbated the polarization and extremist behaviour we are seeing across society today.”

“The invasion has catalysed nations and governments to come together to sever financial and business ties with Russia. United in their steadfast commitment to support the Ukrainian people, they launched an “economic war” against Russia.

“Governments across the world almost unanimously imposed sanctions, including taking the unprecedented step of barring the Russian central bank from deploying its hard currency reserves.

“Capital markets, financial institutions and companies have gone even further beyond government-imposed sanctions,” he writes.

“Access to capital markets is a privilege, not a right. And following Russia’s invasion, we saw how the private sector quickly terminated longstanding business and investment relationships.”

Since the war started BlackRock “moved quickly” to suspend the purchase of any Russian securities in its active or index portfolios.

He says the actions taken by the private sector to stop doing business in Russia “demonstrate the power of the capital markets.”

“Russia has been essentially cut off from global capital markets, demonstrating the commitment of major companies to operate consistent with core values. This “economic war” shows what we can achieve when companies, supported by their stakeholders, come together in the face of violence and aggression.”

Tags: Blackrock