Groups tighten compliance in response to Russian sanctions

Fund management groups are tightening rules around investing in Russia, in some cases discouraging portfolio managers from adding to positions.

Following the escalation of hostilities between Russia and Ukraine, groups are reacting by not only obeying recent sanctions but also taking additional steps. The EU and US have already prohibited the direct or indirect purchase of certain transferable securities and money-market instruments issued after 1 August by five Russian banks, including Sberbank, VTB Bank, and Gazprombank.  Despite signs of a ceasefire last week, further sanctions are still on the agenda, including a ban on state-controlled Russian oil and defence companies raising funds in EU capital markets.  Fund houses...