NYC’s Plan To Divest Pensions From Russia Hits Snag: Report

NEW YORK CITY — About $300 million in New York pension funds could have to chill in Russia longer than planned, according to a new report.

A block on foreigners selling shares in Moscow's stock market temporarily stalled city and state officials' plans to divest pensions from Russian assets in protest over the invasion of Ukraine, the New York Post reported.

All five New York City pension system boards recently — and separately — voted to divest, according to the City Comptroller's Office.

“The rallying cry for peace in Ukraine has reverberated globally as millions of people are displaced and families torn apart," City Comptroller Brad Lander, who pushed the divestment plans, said in a statement. "The New York City Retirement Systems have taken bold, unified action to express solidarity with those under attack in Ukraine and to protect the long-term value of their portfolio as additional sanctions are placed on Russia. New York City continues to stand with the people of Ukraine, and we hope that the global effort to hold the Russian government accountable for their abhorrent actions accelerates a path toward peace as soon as possible."

New York City officials have roundly criticized Russian President Vladimir Putin's decision to invade Ukraine — the largest incursion into a European country since World War II. Their denunciations dovetailed with protests by Ukrainians, Russians and others within the city.

Lander's push to divest city pension funds echoed larger economic sanctions by the United States and other countries that have left Russia financially isolated from the world.

The first city pension system to move forward on Russian divestment was the New York City Police Pension Fund on March 1, followed by the New York City Employees' Retirement System on March 2, according to the comptroller's office.

Teachers' Retirement System board members and their Board of Education Retirement System counterparts followed on March 3 and March 15, respectively.

Last week, the NYC Fire Pension Fund's trustees voted to do so, comptrollers' officials said.

"The five pension funds held a total of $185.9 million in Russian securities at the close of business on February 25, the last day of open business for trading on the Russian stock market," a comptroller's release states.

State Comptroller Thomas DiNapoli last week also announced that an estimated $110 million in New York public pension assets will be taken out as well, the Associated Press reported.

Read the full New York Post report here.