Several other pension funds have joined the long list of those excluding Russian assets from their portfolios, following Russia’s invasion of Ukraine.

The Netherlands’ PMT, Norway’s KLP and Sweden’s PP Pension have all published statements detailing their intention to sell Russian assets when it is possible. All of the funds already have very limited exposure to Russian assets.

Pension funds that have decided to exclude Russia, however, have struggled to sell assets due to the closure of the Moscow Stock Exchange and foreign players have been banned from conducting transactions.

In a statement PMT said: “PMT decided today (8 March) to sell its remaining shares in Russia as soon as circumstances permit. The decision was taken after an analysis of the possible consequences. We want to prevent potential negative impacts on the Russian population in terms of their basic necessities by selling the shares.

“However, since PMT currently has no instruments to verify this, such a consideration on an individual basis (per company) is not feasible. In view of the seriousness of the situation and the limited influence on the situation in Ukraine, PMT decided to sell all shares.”

Norway’s KLP said the decision to withdraw investments in Russia was made on 28 February – leading to the exclusion of 22 companies. As of 3 March 2022, KLP funds with Russian exposure have sold the Russian shares that could be traded in London. However, it has not been possible to sell shares on the Moscow Stock Exchange. The remaining holdings are valued at zero. Today, 9 March, MSCI will remove Russia from the Emerging Markets index.

Sweden’s PP Pension, which has 0.1 per cent of its portfolio invested in Russian assets, said the value of its investments is uncertain and they will be wound up whenever possible.

“It is currently difficult to make any assessment of how the effects will affect the world economy. Inflation has risen in both the United States and Europe over the past six months. The focus has been on future interest rate hikes in the US, which is the main reason for the stock market declines earlier this year. Today we see a completely new uncertainty,” PP Pension CEO, Kjell Norling, said.

“We follow the situation closely and do our best to make our customers and savers feel as safe as possible and that we handle the capital we have been entrusted with.”

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