Russia seeks to halt investor stampede as sanctions hammer economy

Austria's Raiffeisen Bank looks at leaving Russia; Visa, Mastercard block many in sanctions-hit country

Russia said on Tuesday it was placing temporary curbs on foreigners seeking to exit Russian assets, putting the brakes on an accelerating investor exodus driven by crippling Western sanctions imposed over the invasion of Ukraine.

Russian assets went into freefall on Tuesday with London-listed ishares MSCI Russia ETF plunging 50% to hit a fresh record low and Russia's biggest lender, Sberbank slumping 21% as investors raced for the exit.

Major money managers, including hedge fund Man Group and British asset manager abrdn, have been cutting their positions in Russia even as the rouble slumped to a record low and trading froze on its bonds.

"There is certainly a willingness from asset managers and benchmark providers to get rid of Russia exposure in their portfolios and indexes," said Kaspar Hense, a senior portfolio manager at Bluebay Asset Management in London.

"The big question is where do buyers turn up?"

Austria's Raiffeisen Bank International is also looking into leaving Russia, two people with knowledge of the matter told Reuters, a move that would make it the first European bank to do so since the country's invasion of Ukraine.

Russian Prime Minister Mikhail Mishustin announced the country will temporarily stop foreign investors from selling Russian assets to ensure they take a considered decision, but did not give details.