Temasek says exposure to Russia 'insignificant', will comply with government sanctions

SINGAPORE investment firm Temasek said its underlying exposure to Russia and Ukraine is "insignificant", but added that it will comply with legal and regulatory obligations - including sanctions - under the jurisdictions it invests and operates in.

"We have a nominal legacy exposure to a couple of third-party funds in Russia, and have no active investment activity in Russia or Ukraine. Some of our portfolio companies have holdings in the region, though we understand these are not material in value," a Temasek spokesperson said in response to queries by The Business Times.

As at Mar 31, 2021, only 12 per cent of Temasek's net portfolio value of S$381 billion is based in Europe, the Middle East and Africa (EMEA). Nearly two-thirds of the investment company's underlying assets are based in Asia, with the majority in Singapore and China.

Joining a growing number of countries that have slapped sanctions against Russia for its invasion of neighbouring Ukraine, Singapore on Feb 28 announced plans to impose sanctions on Russia, including the blocking of certain Russian banks and financial transactions connected to Russia.

"On the impact of new sanctions, as an investor, we comply with our obligations under Singapore laws and regulations, as well as those of the jurisdictions where we have investments or operations," the Temasek spokesperson said.

"Likewise, we would expect our portfolio companies to comply with their obligations under the laws and regulations of jurisdictions in which they have investments or operations," the spokesperson added.

According to media reports, other Singapore-based companies have also placed restrictions on Russia.

The Republic's trio of local lenders - DBS Group, Oversea-Chinese Banking Corp and United Overseas Bank - are said to have pulled the plug on letters of credit for trades involving Russian energy products.

Meanwhile, Bank of China's Singapore operation has reportedly stopped financing deals involving Russian oil and Russian companies.

"Temasek supports a rules-based international order where businesses, governments and communities can live and work together harmoniously. We join the international community in the hope for a peaceful resolution to the conflict in the region, with no further loss of life," the spokesperson said.