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Minnesota House votes to end state pension investments into Russian companies
The Minnesota House voted 126-0 to force the state's pension funds to sell their Russian and Belarusian investments Thursday, as state lawmakers unite around one of the few concrete steps they can take to show solidarity with Ukraine.
ST. PAUL, Minn. (FOX 9) - The Minnesota House voted 126-0 to force the state's pension funds to sell their Russian and Belarusian investments Thursday, as state lawmakers unite around one of the few concrete steps they can take to show solidarity with Ukraine.
The holdings, estimated to be worth $53 million before Russia invaded Ukraine in February, now hold less than $10 million in value now that Western sanctions have hampered the Russian economy. The investments in Russia and Belarus make up just 0.007 percent of the State Board of Investment's total fund balance.
"It’s important for us to note that there is not much fiscal impact, but there is a great moral impact to us staying invested in Russia," said state Rep. Sydney Jordan, DFL-Minneapolis.
Two Republicans unsuccessfully tried to add China and 15 other communist or totalitarian countries to the banned list. But DFL state Rep. Dan Wolgamott, who was presiding over the House during the debate, ruled the amendments out of order.
The bill heads to the Senate, where senators expect to send it to the governor's desk early next week. A bipartisan group of lawmakers in both chambers have endorsed the legislation.
Minnesota's investment managers must divest 50 percent of their investments in Russian- and Belarusian-held securities within nine months. They can take 15 months to sell the rest of the investments.
Under the bill, state agencies are also banned from entering into contracts with Russian or Belarusian entities. Gov. Tim Walz's administration has not found any such contracts in existence.
Watching from the House gallery was Luda Anastazievsky, a Minneapolis teacher who immigrated from Mariupol, Ukraine when she was young. She called the bill's passage an important step as Russia continues its invasion she hoped would have ended by now.
"We all did," said Anastazievsky of the ongoing war. "But it continues, and I am so appreciative of the efforts that our country, our president and our elected representatives are doing in support of Ukraine."
Ukrainian Minnesotans say they have pressed Walz to accept refugees fleeing the war. A spokeswoman for the governor said Walz is still waiting to hear from the U.S. State Department, which is handling that process.