War in Ukraine puts an end to globalization, says Larry Fink of BlackRock (NYSE:BLK)

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Russia’s invasion of Ukraine “put an end to the globalization we’ve experienced over the past three decades”, BlackRock (NYSE:BLK) Chairman Larry Fink said in his 2022 letter to shareholders. He added that such development comes after the links between countries, companies and people have been strained by two great years. Translate.

In some ways, however, the war is fostering unity among a large group of nations as they move toward excluding Russia from global capital markets. “The invasion prompted countries and governments to come together to sever financial and business ties with Russia,” Fink wrote. “Governments around the world have almost unanimously imposed sanctions, including taking the unprecedented step of banning Russia’s central bank from deploying its hard-currency reserves.”

Companies have also been involved in the move to cut ties with Russia, beyond government-imposed sanctions. “These actions taken by the private sector demonstrate the power of capital markets: how they can provide capital to those who work actively in the system, and how quickly they can reject capital. for outsiders,” he added.

However, Fink does not mention the notable exception of China. However, Chinese banks Don’t be eager to help Russia evade sanctions.

Fink pointed out that BlackRock (BLK) has never had significant investments in Russia “for the majority of our portfolio.” The inactivity in Russia or high exposure has given BlackRock (BLK) the ability to react quickly to the new environment and “move forward with little direct impact on the company.”

“It’s impossible to predict exactly what path this fight will take,” Fink said. “BlackRock (BLK) is focused on monitoring the direct and indirect effects of the crisis and working with our clients to understand how to navigate this new investment environment.”

Also from the mail: BlackRock (BLK) explore the offering of crypto services as customer interest grows

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