Seeking to tighten the financial squeeze on Russia over its war against Ukraine, governors and lawmakers in numerous U.S. states were taking actions Monday to pull state investments from Russian companies while encouraging private entities to do the same.
The effect of sanctions by U.S. states often pales in comparison to national ones, but state officials said they wanted to show solidarity with Ukraine and do what they could to build upon the penalties imposed on Russia by the U.S. government and other Western nations.
Georgia House Speaker David Ralston, a Republican, got a bipartisan standing ovation Monday when he told representatives he would seek to have the state’s retirement funds quickly divested from any Russian assets.
“I don’t know about y’all, but I don’t want one penny of Georgians’ money going to subsidize Vladimir Putin,” Ralston said. “While our role in international affairs is limited, we make clear we stand with those who want to live in peace.”
Georgia Secretary of State Brad Raffensperger, who oversees state business registrations, on Monday also called upon Georgia-based businesses and investors to stop doing business with Russia or any companies that support Russia.
Some state actions have been largely symbolic. Over the weekend, Pennsylvania Gov. Tom Wolf’s administration lit the front of the Capitol in the yellow and blue colors of Ukraine’s flag.
But other state actions have potential teeth.
On Monday, the Indiana House passed legislation that would block Russian-controlled businesses and nonprofits from acquiring property in Indiana for one year. It now goes to the Senate.
“Indiana will not be a safe haven for ill-gotten Russian funds, nor for its oligarchs trying to find financial shelter in the wake of Putin’s unconscionable invasion of Ukraine,” Democratic state Rep. Ryan Dvorak said while proposing the amendment last week.
New York Gov. Kathy Hochul signed an executive order Sunday forbidding her state from doing business with Russia. She ordered state agencies to divest money and assets from companies or institutions aiding Russia in its war against Ukraine. The Democratic governor also said New York would welcome Ukrainian refugees, noting that New York already is home to the largest Ukrainian population in the U.S.
“We strongly condemn the action of Putin and Russia for this unprovoked attack, which is now leading to atrocities against innocent human beings,” she said.
Pennsylvania lawmakers said Monday they will file legislation requiring state pension funds to pull investments connected to the Russian government and its critical supporters. The state Treasury Department also has begun divesting its minimal holdings in Russian-based companies.
In a memo to fellow senators, Democratic state Sen. Sharif Street said Pennsylvania “must wield our economic power to ensure that Russia faces grave consequences for their flagrant violations of international law and human cooperation.”
Pennsylvania House Majority Leader Kerry Benninghoff, a Republican also seeking co-sponsors for the legislation, said state lawmakers “have a moral obligation to ensure that our public fund investments are not inadvertently supporting those who are engaging in an unprovoked invasion of their democratically elected neighbors.”
Arkansas lawmakers also have filed proposals authorizing banks in the state to freeze the assets of Russian oligarchs and to require a boycott of Russian-made goods.
Colorado Gov. Jared Polis, a Democrat, has banned state agencies from doing business with Russian state-owned firms and their subcontractors. Colorado’s $61 billion state pension fund is pulling $8 million from a Russian state-owned bank identified in federal sanctions.
Officials in Iowa, New Hampshire, Ohio, Pennsylvania, Utah, Virginia and West Virginia — all states that control the sale of alcohol — have directed Russian-sourced alcohol to be removed from store shelves, joining a pro-Ukranian movement along with some bars and private businesses.