LONDON (CU)_Over the past few weeks, a host of major multinational firms, including energy companies like BP and Shell, and investment firms such as M&G and Aviva, have been divesting away from Russian assets. Their intention to reduce or sell investments in the transcontinental nation was welcomed by Chancellor Rishi Sunak, who called on UK companies to follow suit.
“I welcome commitments already made by a number of firms to divest from Russian assets – and I want to make it crystal clear that the government supports further signals of intent,” the Chancellor of the Exchequer said on Sunday. “I am urging firms to think very carefully about their investments in Russia and how they may aid the Putin regime – and I am also clear that there is no case for new investment in Russia. We must collectively go further in our mission to inflict maximum economic pain – and to stop further bloodshed.”
Sunak, together with Economic Secretary John Glen, recently met with leading figures in finance, during which he welcomed the firms’ collective intention to economically isolate Russian President Vladimir Putin and his regime. For instance, there has been big write-downs of Russian assets among companies, including oil and gas giant BP’s move to sell the 20 per cent stake it holds in Rosneft, a Russian state-owned oil company, a move which costs up to $25 billion (£19.1 billion).
The United Kingdom, along with the United States and other western allies has announced sanctions on a list of Russian officials and entities, which have had a significant financial implications on firms with operations in Russia. A loss of $17 billion on Russian securities was recorded by the world’s biggest asset management firm, New York-based BlackRock. This was after Russian assets worth more than $18 billion managed on behalf of clients were frozen on 28 February. A vast majority of these assets have become unsaleable as a result of western sanctions on markets, including the shutdown of the Moscow stock exchange for two weeks.
