UK firms rush to dump Russian assets amid efforts to isolate Moscow
British firms are scrambling to dump Russian assets amid efforts by the US, EU and UK governments to deepen Moscow’s economic isolation after the invasion of Ukraine.
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Legal & General, Abrdn and state-backed pension scheme Nest have said they will try to sell their holdings in Russian stocks, while British Gas owner Centrica on Tuesday became the third big British energy firm to cut ties with Russia within a week, echoing BP and Shell by announcing the end of its gas supply agreement with Kremlin-controlled Gazprom.
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Legal & General Investment Management (LGIM), the UK’s biggest asset manager with £1.3tn in assets under management, said it had already cut its exposure to Russian shares and bonds. It will also seek to sell its positions in sanctioned Russian companies “if and when market conditions allow” with the Moscow stock exchange closed.
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Turmoil is expected when Russian assets eventually trade again, as investors dump shares that could be hit by further sanctions. Future earnings of Russian companies are also likely to fall with some economists predicting Russia’s economy will collapse under the pressure.
Read more @The Guardian
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