Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

BlackRock's Fink: Russia is losing an economic war

BlackRock's Fink: Russia is losing an economic war

BlackRock's chief executive Larry Fink has warned that Russia is on even shakier economic foundations as the Ukraine crisis rumbles on.

In an interview with the Sunday Times, Fink warned Russian president Vladimir Putin that he cannot 'play games' if he wants access to western capital. He also anticipates the sell-off in Russian equities may have calmed Putin's motivation to push troops towards Kiev. 

'In one single day, the capital markets crushed Russia. In one single day, the stock market was down 12%, and so 23% for the year.

'The leader of that country had to be concerned. The whole economic foundation of Russia was already shaky, and it made it much more shaky. I think it was the market reaction that changed ' Fink told the Sunday Times.

He stresses Russia's dependency on energy and the fact it has been hit with capital outflows over the past few years.

'They just finished trying to rebuild themselves through [the winter Olympics in] Sochi and the marketplace has said that if you play these games you are not going to have our capital. Instead of having physical war we had economic war. And in one day, Russia lost,' Fink said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter