Larry Fink, CEO of BlackRock Inc. in Zurich, Switzerland, Thursday, March 7, 2019.
Stephen Welmas | Bloomberg via Getty Images
Russia’s invasion of Ukraine has overturned the world order that has been going on since the end of the Cold War, said Larry Fink, CEO and chairman of the world’s largest asset management company, BlackRock.
“Russia’s invasion of Ukraine has put an end to the globalization it has experienced over the last three decades,” Fink said in a 2022 letter to shareholders. “It made many communities and people feel isolated and inward-looking. I think this exacerbated the polarization and radical behavior we see in society as a whole today. “
Fink’s letter arrived for a month in Russia’s invasion of Ukraine, where Moscow troops bombarded cities across the country and killed inescapable civilians. The United States and its allies have imposed unprecedented sanctions on Russia and provided military aid to Ukraine.
Fink, whose company oversees more than $ 10 trillion, said the state and government have joined forces to launch an “economic war” against Russia. BlackRock has also taken steps to suspend the purchase of Russian securities in its active or index portfolio, he said.
“In the last few weeks I have spoken to a myriad of stakeholders, including clients and employees, who are all trying to understand what can be done to prevent capital from being deployed in Russia.” Said Fink.
In the early 1990s, when the world emerged from the Cold War, Russia was welcomed by the world’s financial system and given access to the world’s capital markets, Fink wrote. He said the expansion of globalization accelerated international trade, grew global capital markets and promoted economic growth.
It was 34 years ago that BlackRock was founded and benefited significantly from the evolution of globalization and the growth of capital markets, increasing the need for technology-driven wealth management, Fink said.
“I believe in the benefits of globalization and the power of global capital markets in the long run. With access to global capital, companies fund growth, countries drive economic development, and more people You can experience financial well-being, “says Fink. ..
The CEO said BlackRock is committed to monitoring the direct and indirect effects of the crisis and aims to understand how to navigate this new investment environment.
“The money we manage belongs to our clients, and we strive to understand how changes around the world affect our clients’ investment outcomes in order to serve them,” Fink said. Says.