The president of BlackRock said that Russia was cut off from the world's capital markets

The president of the prestigious US investment management house, Larry Fink, said that Russia has been isolated from the world capital markets, following sanctions imposed by the United States and its allies for the invasion of Ukraine

Fink also highlighted the role played by international companies that decided to leave Russia, as a measure of rejection of Vladimir Putin's decision.

“Russia has been essentially isolated from global capital markets, demonstrating the commitment of major companies to operate in a manner consistent with fundamental values. This is a sign of what we can achieve when companies, supported by their stakeholders, unite in the face of violence and aggression,” the president of Blackrock said in a letter to the company's shareholders.

The text notes that the invasion has catalyzed nations and governments to unite to break financial and commercial ties with Russia.

“United in their firm commitment to support the Ukrainian people. Governments around the world imposed sanctions almost unanimously, including the unprecedented measure of banning the Russian Central Bank from deploying its foreign exchange reserves,” Fink explained.

According to the letter, BlackRock has pledged to contribute quickly to sanctions to suspend the purchase of Russian securities in its active or indexed portfolios.

“Over the past few weeks, I have spoken to countless stakeholders, including our customers and employees, who are looking to understand what could be done to prevent capital from being deployed in Russia,” he says.

The president of the firm believes that the Russian invasion of Ukraine has put an end to the globalization that the world has experienced over the past three decades. He believes that the ramifications of the conflict are not limited to Eastern Europe. Rather, they overlap with those of the pandemic “which has already had profound effects on political, economic and social trends.”

“We had already seen connectivity between nations, companies and even tense people. For two years of pandemic, many communities and people have been left feeling isolated and looking inward. I think this has exacerbated the polarization and extremist behavior that we are seeing in today's society,” he adds.

He believes that the impact of the conflict will affect the coming decades “in ways we cannot yet predict.”

“Russia's brutal attack on Ukraine has disrupted the world order that had been in place since the end of the Cold War, more than 30 years ago. The attack on a sovereign nation is something we haven't seen in Europe in almost 80 years, and most of us never imagined that in our lives we would see a war like this waged by a nuclear superpower,” he adds.

The businessman also expressed his support for the Ukrainian people.

“I speak for everyone at BlackRock when I say that witnessing the Russian invasion of Ukraine has been truly heartbreaking. We support the Ukrainian people, who have shown real heroism in the face of ruthless aggression,” he adds.

The company also implemented a set of actions to contribute to the isolation of Russia.

“In recent weeks, BlackRock mobilized a philanthropic response to help those in need and support our colleagues in Europe, those closest to the war. While we don't have offices or operations in Russia or Ukraine, I know that this has created a great deal of stress and uncertainty for all our employees, particularly those in Europe, and we have worked to provide them with the resources they need, he explained.

Fink explained that in the early 1990s, “when the world was coming out of the Cold War, Russia was welcomed into the global financial system and given access to global capital markets. Over time, Russia became interconnected with the world and became deeply linked to Western Europe. The world benefited from a global peace dividend and the expansion of globalization. These were powerful trends that accelerated international trade, expanded global capital markets, increased economic growth, and helped dramatically reduce poverty in nations around the world.”

He regretted that when they estimated that the world would unite more, the conflict began, generating a setback in what was achieved for more than 30 years. “I continue to believe in the long term in the benefits of globalization and the power of global capital markets. Access to global capital allows companies to finance growth, countries to increase economic development, and more people to experience financial well-being.”

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