Investors are reducing their exposure to Russian positions

Major investors, including hedge fund Man Group and British asset management company Abrdn, say they are reducing their holdings of Russian assets following the country’s invasion of Ukraine.

The announcement comes as shares in several European banks remained stable after Monday’s sharp drop due to the exposure of banks in Russia, but the industry remains volatile on the sixth day of the invasion.

The British Abrdn has about 2 billion pounds in client capital invested in Russia and Belarus, and has reduced its positions, the CEO stressed.

“We will not invest in Russia and Belarus for the near future,” he added.

The hedge fund Man Group has also reduced its investment in Russia in recent weeks and now has a “negligible” exposure to Russia and Ukraine throughout its portfolio, said Antoine Forterre, chief financial officer.

The British fund first reduced its exposure in the region in December, he said, before other departments began reducing the risk over the past two weeks.

The share of the Austrian Raiffeisen Bank International increased marginally after yesterday’s fall by 14% and that of the Italian UniCredit rose 3.1% after falling 9.5% on Monday.

The banking index rose slightly 0.5% after falling 4.5% on Monday.

The London Stock Exchange announced that it will stop trading in two GDRs for VTB Bank, as the British financial authority suspended the negotiations for the share in response to the sanctions.

Amid sharp fluctuations in banking stocks, bankers have tried to reassure investors and the public that they are well-capitalized and that their footprint in Russia is relatively small.