Russia will be impossible to invest in for a long while: Mobius

Looking for good buying opportunities in the stock market? Don't even think about the battered market of Russia, warns investing legend Mark Mobius. Read More...

The Russian market is off limits until at least 2023 due to the country’s invasion of Ukraine, says emerging markets investing legend Mark Mobius.

“It will be impossible for a long time,” the founding partner of Mobius Capital Partners said on Yahoo Finance Live. Mobius earned his stripes building out the emerging markets investing team at giant money manager Franklin Templeton.

Added Mobius, “I don’t see anybody who wants to be investing in Russian equities or debt for another year. I would be surprised if it’s possible.”

The fallout on the Russian economy and its asset markets continues to pile up.

Corporate America and a growing number of multinational companies have joined in protest of Moscow’s military attack on Ukraine, moving to cut business dealings with Russia or take a stand in support for Ukrainian refugees. The list of big-name companies range from iPhone seller Apple to sneaker giant Nike to social media darling Snap.

Those actions come alongside moves by the West and its allies to block some Russian banks from the SWIFT payment network and sanctions on the Central Bank of Russia.

Supporters of the Fridays for Future movement hold a sign with the logo of bank messaging system SWIFT and the Russian flag during a demonstration against the war in Ukraine on March 3, 2022 in Berlin. (Photo by John MACDOUGALL / AFP) (Photo by JOHN MACDOUGALL/AFP via Getty Images)

On Thursday, rating agency Moody’s delivered its blow to the country.

The outfit downgraded Russia’s debt by six notches to “junk” status.

“The high degree of coordination among Western countries to impose wide-ranging sanctions on Russia in response to the invasion of Ukraine is crystallizing severe downside risks to Russia’s credit profile,” Moody’s said.

Mobius isn’t completely bearish on key emerging markets despite the severe heat on Russia, however. Finding winning assets overseas will just take a lot more consideration and planning.

“I think Russia is going to be drug into a very, very long-term situation which is not going to be good for Russia but will be good for Europe because it’s putting Europe together. It’s good for other markets around the world. The U.S. market will be attractive, and many emerging markets have not been impacted —particularly Asia,” Mobius said.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.