Pennsylvania legislators are now drafting legislation to force the state Treasury Department to sell Russian-related holdings. Some selling was underway Monday.
According to the state Treasury Department, it started divesting its holdings from all Russian-based companies last week. The holdings were less than one-hundredth percent of the total holdings. It expects to complete the divestment process by Monday’s close.
In many states , governors and legislators have taken steps to withdraw state investments from Russian companies, while encouraging private entities to do so.
Monday’s Divestiture legislation was being written by Kerry Benninghoff (R-Centre) in the Pennsylvania House and by Sharif Street (D-Philadelphia) in the Senate.
Benninghoff stated that it was time to move beyond symbolism to take concrete actions to help Pennsylvania hold Russia responsible and apply pressure to end the attack at a Pennsylvania Press Club luncheon.
In 2010, lawmakers required that investments in Iran and Sudan be divested.
Street wrote to his fellow senators that the “aggressive, illegal invasion of Ukraine” requires action.
Street wrote, “We must use our economic power to ensure Russia faces serious consequences for their flagrant violations international law and human cooper”
Pennsylvania ordered that Russian-made products be removed from state-owned liquor shops and Gov. The front of the Capitol was lit by Tom Wolf’s administration in the yellow-and-blue colors of Ukraine’s flag
Wolf, a Democrat had asked for the Pennsylvania Liquor Control Board’s to get rid Russian-made products. His office stated that he supports the Treasury Department’s divestment.
His office stated that the administration was reviewing all state procurement contracts in order to determine whether it is “providing any economic support to Russia.” However, he was not committed to any calls for pension systems to divest Russian entities and said he would examine any legislation.
It said that $2.9 million was invested in 31 Russian companies out of nearly $40 billion Pennsylvania’s Treasury Department manages. These included energy companies and a few banks.
Republican Treasurer Stacy Garrity is asking the state’s public retirement systems to get rid of Russian holdings as much as possible, according to her office.
The Board Members of the $72 Billion Public School Employees’ Pension System — one the largest public pension funds in the country — will begin to receive details about the fund’s exposure towards Russian-related investments at a workshop scheduled for Monday.
Christopher SantaMaria, chairman of the board, stated that it might be ready for action at its next meeting on March 11, after agency staff have had time to give more information about the investments.
SantaMaria stated that she was interested in finding out what is currently available and how to reduce, if possible, that exposure. “We will definitely get an update.”
SantaMaria stated that board members are likely to have questions about the costs and consequences of selling assets.
SantaMaria stated that selling assets may be more difficult than selling public equities. Also, investments in private equity and hedge funds might take longer to sell.
According to the State Employees Retirement System, the fund had nearly $36 billion in assets as of the end 2020. However, the system said that Russia-related exposure was only 1%.
The chair didn’t return calls seeking comment, and officials from the system did not provide any additional details.
