© . People are seen at a booth of Vanguard Group at a trade show during the INCLUSION fintech conference in Shanghai, China, September 24, 2020. REUTERS/Cheng Leng
NEW YORK () – So far, global companies, banks and investors have announced they have over $110 billion exposure to Russia in one form or another. That number could rise. Data from research firm Morningstar, meanwhile, shows exposure of international funds to the tune of $60 billion in stocks and bonds. Here’s a rundown of what we know as far as Western sanctions are gripping the Russian economy in response to the invasion of Ukraine.: EQUITIES AND BONDS – ESTIMATED $60 BLN FROM CORPORATE FUNDS AND ETF Foreign investors in Russia have invested tens of billions in the country’s stocks and bonds, according to Morningstar data. US asset managers such as Capital Group, Black rock and Vanguard announced large positions, according to the latest portfolio information available to the research firm. Disclosures relate to a period from September 2021 through February 25 of this year. According to Morningstar data, they total over $60 billion when looking at the top 100 open-end and exchange-traded funds worldwide in terms of estimated exposure to Russian securities in US dollars. These included some of the largest Capital Group Companies Inc, one of the world’s largest asset managers, Vanguard and PIMCO and BlackRock (NYSE:). DEBT SECURITIES – $79 BLN JPM analysts said in a research note that foreigners own about $79 billion in Russian debt securities, including local currency offs, hard currency sovereign Eurobonds and corporate hard currency Eurobonds. BANKS – AROUND $78 BLN EXPOSURE DISCLOSED Bank of International Settlements data https://stats.bis.org/statx/srs/table/B4?c=RU&p= shows foreign banks have $120 billion exposure to Russia . In Europe, Italian and French banks have the largest exposure to Russia, each representing just over $25 billion at the end of September, the data said. The exposure of US banks totals $14.7 billion, according to BIS data. Of those who have announced exposure: Raiffeisen Bank International RBIV.VI total Russian exposure was 22.85 billion euros ($25 billion), more than half related to the private sector corporate sector, it said in its 2021 results presentation Societe Generale (OTC:), which controls Russian bank Rosbank, had 18.6 billion euros ($20.5 billion) in total exposure to Russia at the end of last year — or 1.7% of the group’s total. Unicredit (MI:) UniCredit’s aggregate exposure to Russia was €14.2 billion ($15.7 billion) in mid-2021. That includes 8 billion euros in loans provided by the Russian branch. Intesa Sanpaolo (OTC:) ISP.MI Italy’s largest bank, credit exposure to Russia was 5.57 billion euros ($6 billion) at the end of 2021, or 1.1% of the total. Of the US banks, Citi announced a total exposure of nearly $10 billion. By comparison, Goldman Sachs Group Inc (NYSE:) GS.N reported $293 million net exposure to Russia last month, as well as a total of $414 million in market exposure as of December 2021. EXXON MOBIL – $4 BLN EXPOSURE Exxon Mobil (NYSE:) said Tuesday it would exit Russia’s oil and gas business, which it has valued at more than $4 billion, and halt new investment as a result of Moscow’s invasion of Ukraine. BP (NYSE:) – $25 BLN EXPOSURE BP announced it is giving up its stake in Russian oil giant Rosneft. Rosneft accounts for about half of BP’s oil and gas reserves and a third of production, and the divestment of the 19.75% stake will result in costs of up to $25 billion, the British company said. SHELL – $3 BLN EXPOSURE Shell (LON:) will end all of its Russian operations. Shell said the decision to exit Russian joint ventures will lead to impairment charges. Shell had about $3 billion in fixed assets in these companies in Russia at the end of 2021, it said. NORWAY SWF – Exposure of $3 BLN The Norwegian sovereign wealth fund, the world’s largest, has written off the value of the approximately $3 billion in assets it held in Russia. At the end of 2021, the fund held investments in Russia worth some 27 billion kronor ($3.0 billion), equivalent to 0.2% of its total value, but probably now worth 2.5 billion kroner. At the end of 2021, the fund’s Russian assets consisted of shares in 51 companies. The most valuable holdings were in gas producer Gazprom (MCX:), bank Sberbank and oil company Lukoil, which together accounted for two-thirds of the total. “They’re pretty much written off,” CEO Nicolai Tangen told later Thursday, after the Norwegian government ordered the fund to sell the assets. CALSTRS – $171.5 Million The California State Teachers’ Retirement System (CalSTRS), the second-largest US pension fund, said Wednesday that the value of its stake in Russia was $171.5 million at the end of February. CALPERS – $900M CalPERS, which manages the largest US public pension fund, said late Thursday that the fund had about $900 million in exposure to Russia, but no Russian debt.