Russian connections of JP Morgan under scrutiny as it faces calls to shut down one of its key funds
The Russian connections of JP Morgan are under scrutiny as it faces calls to shut down one of its key funds.
The JP Morgan Russian Securities investment trust still has assets in some of the largest Kremlin-backed firms including Gazprom, Sberbank and Rosneft.
Its links with Russia have already led to the departure of Ukrainian director Tamara Sakovska, who resigned shortly after Putin’s war against Ukraine began.
Scrutiny: The JP Morgan Russian Securities investment trust still has assets in some of the largest Kremlin-backed firms including Gazprom, Sberbank and Rosneft
Two months ago the fund’s shareholders risked criticism by voting for the trust to continue operating for another five years.
Tory MP Kevin Hollinrake, chairman of the All Party Parliamentary Group on Fair Business Banking, said: ‘It sends a bad message.
‘The fact you’ve got anything with the word Russia on it implies investment in Russia and is giving Putin some credibility that we can ill afford.
‘They should absolutely close the fund. They shouldn’t have any Russian assets in it.’
The board, headed by lead manager Oleg Biryulyov, has since shifted its main holdings away from state-owned Russian firms to companies in Kazakhstan.
The fund’s five largest investments – in Gazprom, Sberbank, Lukoil, Norilsk Nickel and Rosneft – have now been cut to no more than 1.1 per cent each.
JPMorgan Asset Management declined to comment.