Russian investments stuck
Australia’s sovereign wealth fund is holding around $200 million dollars in 19 Russian companies.
The Future Fund announced in February this year that it would divest its holdings in companies listed on the Russian Stock Exchange as part of international sanctions intended to pressure President Vladimir Putin over his invasion of Ukraine.
But the Central Bank of Russia has banned brokers on the Moscow Stock Exchange from executing sales on behalf of non-Russian residents, which Australia’s federal Finance Department claims restricted its divestment options.
“The prohibition remains in place meaning the Moscow Stock Exchange is closed to foreigners, preventing them from selling securities listed on that exchange,” a finance spokesperson has told reporters
“The Future Fund has issued sell orders to its investment managers over its entire Russian position.
“This sell order does not include price as a factor meaning there is no price that is required to be realised from these investments for them to be divested.”
Australia’s Reserve Bank has joined fellow central banks in attempting to squeeze Russia’s finances, preventing $8 billion worth of Australian bonds from being cashed in by the Bank of Russia.
Meanwhile, Prime Minister Anthony Albanese has received a request from Ukraine to send more military equipment and potentially provide training.