Australian investors are ripping hundreds of millions of dollars from Russian companies in response to the Kremlin’s bloody invasion of Ukraine.Credit:AP
Australia’s richest man and Fortescue Metals chairman Andrew Forrest said his company would discontinue plans to explore hydrogen projects in Russia. “We will be withdrawing major investment considerations from Russia because we cannot tolerate any circumstance where one country invades another,” Dr Forrest said.
Australia’s largest superannuation fund,AustralianSuper,has a string of investments in Russia’s largest companies,according to recent disclosures,including about $139 million in Sberbank,the largest state-owned bank singled out by US sanctions.
The fund,with 2.4 million members and $233 billion invested,also has stakes in Lukoil ($43.3 million),Gazprom ($7.5 million),Rosneft ($20 million),Polyus ($20 million) and Severstal ($6.1 million) among others. AustralianSuper declined to comment.
Aware Super chief investment officer Damian Graham,who oversees more than $160 billion,said his team had divested about $50 million worth of Russian investments since late last week,including stakes in Gazprom and Lukoil.
Mr Graham said the fund moved quickly because it might soon be impossible to sell these assets. “They’re trying to ensure foreigners don’t sell out of their market,” Mr Graham said. “The next leg is to ensure we can access the money.”
He said the private sector should “take action” to isolate Russia. “I do believe that our actions should align to views in our conviction,” he said. “We certainly feel for the Ukrainian people,it’s a terrible situation they’re facing.”
Treasurer Josh Frydenberg said it was his expectation that “every fund will review their holdings and where consistent with their legal duties seek to divest any Russian holdings”.