Future Fund, NSW government divest millions from Russia

The Future Fund confirmed on Monday it will wind down the $200 million it has invested in companies listed on the Russian stock exchange.

“The Future Fund has implemented all sanctions imposed by Australia, the United States and the European Union to date,” a spokesperson for the fund said.

“We have devoted significant resources to compliance and will continue to do so as additional sanctions are announced.”

The Russian ruble crashed to a record low following losses of 40 per cent and a subsequent 25 per cent, with the country’s central bank forced to more than double interest rates to 20 per cent as Western sanctions deliver a crushing blow to the economy.

The Future Fund confirmed it has no holdings in Russian sovereign debt or other fixed income.

“We will be winding down the remaining exposure [which is not currently subject to divestment sanctions] as market conditions permit”. 

Elsewhere, the NSW government too announced it intends to sell its holding of Russian assets.

According to Sydney Morning Herald, the $15 billion NSW Generations Fund is believed to hold $75 million in Russian debt and equities.

A statement issued on Monday, by NSW Treasurer Matt Kean, said it was important “for liberal democracies to stand with Ukraine and stand up for our values”.

“The NSW government intends to sell its holdings of Russian assets in its investment funds," Mr Kean said.

“I informed the Treasury Secretary of this intention on Friday afternoon and he is currently preparing advice on how to make this happen."

Future Fund and the NSW government are just the latest large investors to dump hundreds of millions of dollars worth of Russian investments.

Also on Monday, the chairman of Fortescue Metals, Andrew Forrest, said his company would withdraw major investment considerations from Russia “because we cannot tolerate any circumstance where one country invades another”.

Treasurer Josh Frydenberg also encouraged super funds to “review their holdings and where consistent with their legal duties seek to divest any Russian holdings”.