BlackRock CEO Larry Fink declared Thursday that Russia’s invasion of Ukraine has “finished” the globalization seen in decades, “Russia’s action will be demonstrated over the next few decades. Will be done. “
In a letter to shareholders, Fink said that while the pandemic created a rift between the country and businesses, Russia’s attack on Ukraine, which began last month, “is the polarization and radical behavior seen throughout society today. Made it worse. “
The war in Ukraine, Europe’s largest war since World War II, has spillover effects and may reconsider in which country companies do business, the CEO said.
“Russia’s invasion of Ukraine and its subsequent separation from the global economy will encourage companies and governments around the world to reassess their dependencies and reanalyze their manufacturing and assembly footprints,” Fink wrote. .. “And while Russia’s dependence on energy is in the limelight, businesses and governments will also see more broadly their dependence on other countries.”
BlackRock, a global investment management firm, has joined a number of international companies to break its business relationship with Russia after suspending the purchase of Russian securities after the February 24 invasion of Ukraine.
Russia has also been hit by sanctions from countries around the world and has been partially banned by the international banking system SWIFT, but the United States and the United Kingdom have moved to ban Russia’s oil imports.
After the collapse of the Soviet Union in the early 1990s, Russia was welcomed by the global financial system. The world has seen “the rise of globalization and the growth of capital markets,” Fink said.
Russia’s swift blockade “shows the power of capital markets,” he added, but access to them was “privilege, not right.”
“This’economic war’shows what we can achieve when stakeholder-backed businesses come together in the face of violence and aggression,” he wrote in a letter.