In order to support the Ukrainian people and protect the interests of Californians, Gov. Gavin Newsom called for state sanctions against Russia.
This Wednesday by means of a letter to the leaders of various California retiree bodies to take concrete action against the Russian government.
The letter was sent to the California Public Employees' Retirement System (CalPERS), the California State Teachers' Retirement System (CalSTRS) and the University of California Retirement System, demanding that California take advantage of its considerable global investment portfolio and apply state sanctions against Russia, the government that invaded Ukraine.
"Russia's brazen and lawless military attack on Ukraine demands our support for the Ukrainian people and demands an immediate and severe cost to the Russian government," Governor Newsom wrote in calling for state sanctions against Russia.
"The California Constitution is explicit in the fiduciary duties required of us on behalf of the hundreds of thousands of Californians who have invested in these schemes. These fiduciary duties and our moral imperative in the face of these atrocities demand that I act to address Russia's aggressions and immediately restrict Russia's access to California capital and investments," he stressed.
The combined assets of CalPERS, CalSTRS and the UC retirement system amount to $970 billion, equivalent to 60 percent of Russia's gross domestic product last year.
More than $1.5 billion of these California investments are held in various financial instruments linked to Russia's financial markets, so Newsom made the call to those institutions.
Thus, the governor asked for the funds to stop the flow of state money to Russia, prohibit the purchase of Russian debt, and conduct an assessment to ensure that his actions protect the interests of current and future retirees.
In turn, he requested recommendations from CalPERS, CalSTRS and the UC on additional measures that can be implemented to protect state investments amid global financial sanctions on Russia.
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