More investors join Russia’s exodus, find it hard to leave By Reuters

By Simon Jessop, Karin Strohecker and Gwladys Fouche LONDON () – The number of investors looking to dump their Russian holdings continued to grow Monday following the country’s attack on Ukraine and despite central bank attempts to cut the flow. The exodus of capital from Russia has accelerated since its invasion of Ukraine last week, as the West ramps up sanctions against President Vladimir Putin’s government in response to its “special operation” in the country. The latest to go to exit was Norway’s largest pension fund, KLP, which said it planned to sell about $56 million worth of Russian stock, and the Church of England, which said it had asked its fund managers to sell Russian stocks last week. Kiran Aziz, head of responsible investing at KLP, which manages about $80 billion in assets, said it had already sold Russian stocks and bonds listed in London and was doing the same in New York. “Of course, for assets listed in Moscow, it is not possible to sell now,” Aziz told , citing a decision by the Russian central bank to freeze all trading on the Moscow stock exchange. Euroclear, which continued to prey on the markets, said Monday it has severed its link with rival settlement house Clearstream Banking for settling transactions in Russian securities in response to European Union financial sanctions. The Church could be one of the last to benefit from open markets after telling its fund managers on Feb. 24 to sell direct holdings equal to about 0.16% of its total investments. It added that it would not make any further investments either. Also, Britain’s Universities Superannuation Scheme pledged Monday not to buy more Russian assets, the country’s largest private pension scheme with about $120 billion in assets. “We have imposed a moratorium on new long positions in all Russian assets beyond full compliance with UK government sanctions restricting trade in sovereign debt and other Russian assets,” a spokesperson said in email comments. “Where we have existing investments, we will have to carefully consider our position in light of trade restrictions,” the spokesperson added. More wealth owners’ decision to take a stance follows last weekend’s news that the $1.3 trillion Norwegian state wealth fund, the world’s largest, was planning to do the same, and as the New York City Comptroller said he was assessing assets for possible divestiture. ($1 = £0.7459) Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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