KLM Royal Dutch Airlines (KL, Amsterdam Schiphol) has announced that its ground-crew pension fund, Algemeen Pensioenfonds KLM, divested its entire holdings in Russia during the recently ended third quarter. The fund said that besides market risk, the potential escalation of the European Union’s boycott of Russia also posed a big country risk.
"The Board believes that Russian investments are now more risk than potential benefit and therefore, in conjunction with the asset manager, have decided to dispose of its interests in Russia," it said.
Western sanctions imposed on Moscow for its perceived backing of rebels in eastern Ukraine have accelerated Russia's economic downturn. Depressed oil prices have only compounded the problem - further hastening the Russian Rouble’s decline.
