Newsom Orders CA Agencies To Terminate Contracts With Russia

CALIFORNIA — Gov. Gavin Newsom on Friday ordered all state agencies to divest themselves of Russian holdings following the country's continued invasion of Ukraine.

Newsom also asked California-based businesses to review their own investments and contracts to comply with sanctions on Russia and to "take actions" to support Ukrainians.

"California stands with Ukraine and the Ukrainian community in California – one of the largest in the country,” said Governor Newsom. “Our state shares many close ties with Ukraine and will continue our efforts to support the nation’s brave fight for the fundamental rights and freedoms of its people."

The governor signed an executive order on Friday, which prompts all state agencies and departments to review contracts for commodities, services and technology valued at $5 million. Agencies were directed to terminate any contracts subject to the economic sanctions imposed by state law and the federal government.

Newsom on Friday met with the consul general of Ukraine Dmytro Kushneruk to discuss the state's solidarity with Ukraine.

"Russia's brazen and lawless military assault on Ukraine demands our support for the Ukrainian people and exacting an immediate and severe cost upon the Russian government in response to its continuing aggression," Newsom said last week. "California has a unique and powerful position of influence given the state's substantial global investment portfolio."

Last week, the governor sent a letter calling on California's largest pension funds and its university retirement system Tuesday to break economic ties with Russia to weaken the country's economy after its invasion of Ukraine.

He addressed the California Public Employees' Retirement System, or CalPERS, which holds roughly $480 billion in assets; the California State Teachers' Retirement System, or CalSTRS, which holds $320 billion in assets; and the University of California's retirement system, which holds another $170 billion.

On Thursday, CalPERS announced that it ceased all transactions in Russian publicly traded equity, Reuters reported.

The executive order expedites an effort announced by state Senate Majority Leader Mike McGuire (D-Healdsburg) to introduce a bill that would all on businesses and state agencies to cut economic ties with Russia.

"The world is watching the atrocities taking place in Ukraine. It's sickening," McGuire's office said in a statement. "We must stand strong for the people of Ukraine. That's why we all must mobilize to stop Russia in its tracks. California has unique and remarkable economic power in this circumstance."

President Joe Biden's administration announced sweeping sanctions against Russia last month. But McGuire said he sought to further weaken Russia's financial standing.

"As the fifth largest economy in the world, we must use this power for good. We can help stop this autocratic thug, Putin, by advancing this critical legislation and enacting our own financial divestments," he said.

New York, Georgia, Indiana, Pennsylvania, Connecticut, New Jersey, Virginia and North Dakota have all joined the effort to place sanctions on Russia.

A wave of tech companies, some anchored in California, blocked the media channels such as RT from their platforms.

Google announced Tuesday that it will block the YouTube channels of Russian media outlets in Europe "effective immediately" but acknowledged "it'll take time for our systems to fully ramp up."

Russian President Vladimir Putin on Friday intensified a crackdown on media outlets and individuals who fail to hew to the Kremlin line on Russia's war in Ukraine, blocking Facebook and Twitter and signing into law a bill that criminalizes the intentional spreading of what Moscow deems to be “fake” reports.

The move comes after Twitter announced Monday that it would add labels to content from the Kremlin's websites after seeing more than 45,000 tweets daily from users sharing Russian state-affiliated media links in recent days. The company also said it would not recommend or direct users to Russian-affiliated websites in its search function.

Last weekend, the Menlo Park-based company announced it will ban ads from Russian state media and remove a network of 40 fake accounts, pages and groups that published pro-Russian talking points.