By Davide Barbuscia

NEW YORK (Reuters] – U.S. foreign investors could be quick to dispose of Russian assets following Western allies’ sanctions against Moscow. But a small number of fund managers have limited exposure to Russia and are avoiding making rapid decisions in the face price declines and trade constraints.

After the invasion of Ukraine, international sanctions were increasingly applied to Moscow. This led Russian authorities and regulators to prohibit foreign brokers selling Russian securities.

Investors have been in a frenzy to declare that they want to get out of Russian investments. However, the trading halts and Moscow’s prohibition on foreign asset sales are complicating matters.

However, some U.S.-based investors may not need to panic. Their small exposure to Russian stock and bond portfolios does not adversely affect their returns. Furthermore, sharp falls in valuations or liquidity worries discourage rapid exits.

Michael Kushma is the chief investment officer at Global Fixed Income. He stated that “What we are doing isn’t making any precarious decisions”. Morgan Stanley Investment Management.

“We are facing an extremely difficult and uncertain situation. He said that if he takes on a position, he is worried about what tomorrow will bring. However, despite not disclosing his Russian exposure, spokesman for the company stated that positions were adjusted in response to rising tensions.

Russia has temporarily blocked foreign investors from purchasing Russian assets in response to Western sanctions. Moscow Exchange stock exchange trading was suspended Monday by Russia’s central banking.

After valuations plunged across all asset classes over the week, these moves occurred.

Ten-year Russian OFZ bonds (10 years), which are inverted to price, have seen their highest yields since early 2016. London-listings for Gazprom and Sberbank (MCX:), have almost been wiped out.

Marcelo Assalin of William Blair Emerging Markets Debt stated that his company had little exposure to Russian bonds. He also said that he wasn’t trying to sell the bond, pointing out that there was a lack of liquidity on the market.

“I’m skeptical investors will be able to find liquidity here to purchase large positions, so I don’t believe marketability is something investors can find on the marketplace right now,” he stated.

Polaris Capital Management (NYSE:) Capital Management lead portfolio manager Bernard Horn stated that his only real exposure to Russian markets was as a shareholder in Alrosa Diamond Mining Company. And he wasn’t in a rush to get rid of it.

He stated that “we’re not allowed to transact stock without authorization” and added that certain investments have seen an increase in value due to the Ukraine crisis.

We have greater exposure, which is benefitting in some manner from the lack of gas, fertilizer and methanol. He said that all of this is in part more than compensating our Alrosa exposure.

Global X’s chief investment officer Jon Maier stated that he has a small amount of exposure to Russian assets. He said getting rid was no concern.

However, there was increased interest in ETFs which invest in companies that can benefit from cybersecurity technology adoption, he stated. Weekly inflows to that ETF were approximately $80 million at February 28, he added.

After Western sanctions, the risk of Russian cyberattacks has increased.

Prices were distorted by uncertainty about the conflict and the threat of additional punitive sanction, which exacerbated the need to hold tight or buy assets at a lower price.

Morgan Stanley’s Kushma said, “This is to us a great shock, but it’s only a temporary shock.”