Russia’s invasion of Ukraine will reshape the world economy and drive inflation even higher, BlackRock CEO Larry Fink warns in his annual letter to shareholders. The boss of the world’s biggest asset manager writes that the war “has put an end” to globalization as we know it. Russia’s effective removal from the international financial system as well as COVID-era supply chain woes are making countries and companies rethink “their dependencies on other nations.” More firms will try “to onshore or nearshore” operations, he writes, and this “reorientation of supply chains will inherently be inflationary.”

As the Chairman of BlackRock, I have the unique privilege of writing to our shareholders each spring to reflect on the past and look ahead to the future of our company. This year, I do it amidst a humanitarian tragedy caused by Russia’s brutal attack on Ukraine, which has been truly heart-breaking to witness.

This act of aggression has put an end to the era of globalization that marked the last three decades, and will have profound implications for geopolitics, macroeconomic trends, and capital markets. As a fiduciary, we are working to help clients understand how these changes will impact their investment outcomes and how to navigate a new investment environment.

It is during these more challenging and uncertain moments that the power of BlackRock’s culture and the resilience of our business shine through, and I’m proud to be part of this organization. I can’t think of a time when it’s been more important to live our principles, stay true to our purpose, and focus on the long-term needs of our shareholders, clients, employees, and communities.

Read more about what the future holds for BlackRock in my annual letter to shareholders: https://lnkd.in/gUEPc4Y

https://www.blackrock.com/corporate/investor-relations/larry-fink-chairmans-letter