BlackRock funds see $17B in losses on Russian securities – Financial Times

BlackRock Inc. is seeing about $17 billion in losses on its exposure to Russian securities holdings due to Russia's war on Ukraine, the Financial Times reported March 11, citing the asset manager.

The sharp markdown on its securities comes as the shuttered markets and worldwide sanctions imposed following Russia's invasion of Ukraine have made Russian securities held by clients virtually impossible to sell. BlackRock clients had more than $18.2 billion worth of Russian assets at the end of January, the report said.

BlackRock CEO Larry Fink said in a LinkedIn post that "this has been a highly complex and fluid situation, and BlackRock will continue actively consulting with regulators, index providers and other market participants to help ensure our clients can exit their positions in Russian securities, whenever and wherever regulatory and market conditions allow," FT noted.

The asset manager declined to provide a breakdown of its exposure to Russian securities or detail which funds have taken losses. However, BlackRock has marked down the value of its largest Russian exchange traded fund, ERUS, to a total value of less than $1 million, compared to $600 million at the end of 2021. The asset manager also marked down its Europe fund ETF, which was heavily exposed to Russia, to €269 million from €622 million at the end of January, according to the report.