Proposal to scrub state investments tied to Russia gets strong committee support

Earlier this month, Gov. Tim Walz issued an executive order banning state contracts with Russian companies.

A bipartisan proposal headed to the House Ways and Means Committee would direct the State Board of Investment to divest Minnesota’s investments from Russia and Belarus by Aug. 1, 2022. State law has similar restrictions with Iran and Sudan.

Sponsored by Rep. Sydney Jordan (DFL-Mpls), HF4165, as amended, was approved 10-0 Tuesday by the House State Government Finance and Elections Committee.

(House Photography file photo)

“We’re joining an ever-growing list of democracies in responding to the atrocities committed by Russia’s government, not only because standing against tyranny is always the right thing to do, but because we can’t allow a single cent from our state to possibly line the pockets of oligarchs who sanction the murder of innocent civilians,” Jordan said in a March 10 statement.

Minnesota's state pension fund investments in Russia total approximately $53 million.

“It’s a relatively small gesture, but it’s significant,” said Rep. Anne Neu Brindley (R-North Branch).

Luda Anastazievsky chairs the Minnesota Ukrainian American Advocacy Committee. She moved to Minnesota in 1990 from Mariupol — a city on the receiving end of roughly 100 Russian bombings. A Minnesota school teacher for 30 years, Anastazievsky doesn’t want any of her retirement funds to go to a country whose leaders’ actions have left her with fear of the unknown.

Anastazievsky said she “can barely function” since the Russian invasion began. “I feel very anxious and worried because my family and friends in Mariupol are in a city under siege. I do not know how any of them are doing or even if they’re alive because communication has been impossible.”

Rep. Duane Quam (R-Byron) unsuccessfully tried to add an amendment that would have added China to the investment restrictions based, in part, of its government “atrocities” regarding some religions and Chinese agreements with Russia on military assistance.

Sen. Karin Housley (R-Stillwater) sponsors the companion, SF3928, which awaits action by the Senate State Government Finance and Policy and Elections Committee.