More than £1bn worth of investor cash is locked up in Russian stocks after a collection of investment funds blocked withdrawals from the chaotic Russian market.
JPMorgan Chase & Co (NYSE:JPM), Danske Bank and Schroders PLC (LSE:SDR) are ampng groups that have suspended funds operating in Russia, after the country’s stock market closed on Monday having lost a third of its value in a day on the back of the country’s invasion of Ukraine.
JPMorgan Asset Management has frozen funds including its Russia Equity fund and Emerging Europe.
"Due to the escalating conflict between Russia and the Ukraine, local market trading conditions are not currently operating as they normally would do and accordingly, we are unable to manage the fund in accordance with the investment objective and policy,” UK funds COO Andrew Lewis said in a letter to Emerging Europe Investors earlier this week.
"We understand that being unable to deal in the fund is frustrating and we will take the decision to lift this suspension as soon as we consider it is in the best interests of existing shareholders to do so."
British-based Shroeders, which holds a £305mln stake in Russia through its own Emerging Europe fund, stopped customers from withdrawing money.
The actions are likely to mirror those expected by Vladimir Putin, who is planning to temporarily stop investors from selling Russian assets.
Schroders' Emerging Europe fund was down 33% between 16 February and 25 February when it temporarily closed the fund, while JPAM's equivalent fund fell more than 35%.