Larry Fink, CEO and chairman of the world’s largest asset supervisor BlackRock, mentioned Russia’s invasion of Ukraine has upended the world order that had been in place for the reason that finish of the Chilly War.
“The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” Fink mentioned in his 2022 letter to shareholders. “It has left many communities and people feeling isolated and looking inward. I believe this has exacerbated the polarization and extremist behavior we are seeing across society today.”
Fink’s letter got here a month into Russia’s invasion of Ukraine with Moscow’s forces bombarding cities throughout the nation and killing civilians unable to flee. The U.S. and its allies have imposed unprecedented sanctions on Russia and supplied navy help to Ukraine.
Fink, whose agency oversees greater than $10 trillion, mentioned nations and governments have come collectively and launched an “economic war” towards Russia. He mentioned BlackRock has additionally taken steps to droop the acquisition of any Russian securities in its lively or index portfolios.
“Over the past few weeks, I’ve spoken to countless stakeholders, including our clients and employees, who are all looking to understand what could be done to prevent capital from being deployed to Russia,” Fink mentioned.
Again within the early Nineties when the world emerged from the Chilly War, Russia was welcomed into the worldwide monetary system and given entry to world capital markets, Fink wrote. The growth of globalization accelerated worldwide commerce, grew world capital markets and elevated financial development, he mentioned.
It was proper then, 34 years in the past, when BlackRock was based and the agency benefited immensely from the rise of globalization and development of the capital markets, which fueled the necessity for technology-driven asset administration, Fink mentioned.
“I remain a long-term believer in the benefits of globalization and the power of global capital markets. Access to global capital enables companies to fund growth, countries to increase economic development, and more people to experience financial well-being,” Fink mentioned.
The CEO mentioned BlackRock is dedicated to monitoring the direct and oblique impacts of the disaster and aimed to grasp how one can navigate this new funding atmosphere.
“The money we manage belongs to our clients. And to serve them, we work to understand how changes around the world will impact their investment outcomes,” Fink mentioned.