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Russian 1,000 ruble banknotes. (Bloomberg) |
The Obama administration told asset managers that it was planning additional sanctions against Russia over the conflict in Ukraine.
Officials from the Treasury Department and the National Security Council met in Washington with mutual-fund and hedge-fund managers, according to a person who attended. Their comments sent a message that more sanctions are on the way and that investors, if they were concerned about the impact, should manage that risk, said the person, who asked not to be identified because the discussions weren’t public.
The meeting, convened a week before talks with Russia in Geneva, left managers grappling with the question of whether the government intended to follow through, or was trying to trigger asset sales through the threat of sanctions, said the person. Former administration officials have said forcing Russia out of global financial markets is the strongest tool President Barack Obama has at his disposal in trying to defuse the crisis between Russia and Ukraine.
“A lot of firms on the buy side have cut their exposure to Russia,” Jack Deino, the head of emerging-market debt at Atlanta-based Invesco Ltd., said in an interview, talking about the industry in general.
Staff of the National Security Council, which is the president’s main forum for considering national security and foreign policy matters, has reached out to businesses to provide information on sanctions against Russia, said Laura Lucas Magnuson, a spokeswoman for the council. (Bloomberg)
