Investors stay away from Russian bonds and shares

LBS’s Florin Vasvari tells the Financial Times that many investors are self-sanctioning in the wake of Russian aggression

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Many investors are “self-sanctioning” in response to Russian’s ongoing war in Ukraine, Florin Vasvari, Professor of Accounting and Academic Director of the Institute of Entrepreneurship and Private Capital at London Business School, told the Financial Times.

Despite the price of some Russian bonds and shares falling to as low as 10% of their value pre-war, investors are staying away.

“Settlement [of bond sales or coupon payments] is very difficult,” Professor Vasvari said.

Asset managers are also concerned about the prospect of investor anger at continued investment in Russia.

For some, however, the Russian market has been off the cards for a while.

“Some endowment funds and Canadian pension funds have had an absolute ban on Russian exposure since 2014 when Putin invaded Crimea,” Professor Vasvari said.