Fink clarified that BlackRock never had significant investments in Russia, which has allowed them to navigate the uncertainty to adapt to the new financial environment.
“The invasion has catalyzed nations and governments to come together to cut finance and trade ties with Russia. United in their steadfast commitment to supporting the Ukrainian people, they launched an ‘economic war.’ Governments around the world imposed sanctions almost unanimously, including the unprecedented adoption of prohibiting the Russian central bank from deploying its foreign exchange reserves,” he stressed.
The letter to the company’s shareholders, dated March 24, indicates that BlackRock has suspended the purchase of Russian assets in its portfolios, in addition to the fact that they have participated in supporting those affected by the invasion of Ukraine.
Larry Fink wrote that the invasion of Ukraine will cause companies and governments to reassess their business and production schemes, especially in energy matters, and where countries like Brazil, Mexico and the United States could benefit.
“This decoupling will inevitably create challenges for companies such as higher costs and margin pressures…however a large-scale reorientation of supply chains will be inherently inflationary,” he warned.
Fink said that in 2021 BlackRock had its strongest organic growth in its history, generating net income of $540 billion.