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German Regulator Shelves ESG Rules After Russia Energy Fears

  • Bafin says energy, geopolitics too unstable for regulation now
  • Bafin chief says fund managers can still market ESG products
The turret of a Russian tank sits next to a destroyed petrol station in the village of Skybyn, northeast of Kyiv on May 2. 

The turret of a Russian tank sits next to a destroyed petrol station in the village of Skybyn, northeast of Kyiv on May 2. 

Photographer: Sergei Supinsky/AFP/Getty Images
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Germany’s financial regulator has shelved planned rules for classifying investment funds as sustainable, after Russia’s invasion of Ukraine sent shockwaves through global energy markets.

“Against the backdrop of the dynamic situation in regulation, energy and geopolitics, we have decided to put our planned directive for sustainable investment funds on hold,” BaFin President Mark Branson said Tuesday at a press conference in Frankfurt. “The environment isn’t stable enough for permanent regulation.”