VanEck liquidates two Russian ETFs

VanEck is liquidating two Russian exchange-traded funds almost a year after Vladimir Putin’s invasion of Ukraine.

The issuer is closing the VanEck Russia (RSX) ETF and the VanEck Russia Small-Cap (RSXJ) ETF, according to a statement released on Thursday. Trading in funds and other similar funds came to a halt after Russia’s brutal invasion of the neighboring country began in February. The US and its European allies, among other things, imposed tough sanctions on Russia after the war.

“The impact of geopolitical circumstances and sanctions imposed by the United States and other countries on Russian equity transactions and related clearing and payment systems has rendered a significant number of fund positions illiquid, including many depository receipts,” VanEck said. in release.

The company added that the inability to buy, sell and produce or accept Russian securities makes it impossible to manage their investment objectives. VanEck says the liquidation of RSX and RSXJ could take a long time if the situation in the Russian markets does not improve.

Russia-related stocks plummeted after the start of the war and the subsequent economic punishment of the country. But many asset managers have also shunned Russia-related investments for reputational reasons.

Separately, Franklin Templeton said last week that the firm will be liquidating its Franklin FTSE Russia (FLRU) ETF.