By Ishara Nanayakkara
Russia’s invasion of Ukraine on Feb. 24 and the ensuing war between the two countries have spurred global outcry. In response to the rapidly changing situation, the United States recently announced a series of unprecedented sanctions on Russian imports and investments, in alignment with decisions by allies in Europe and across the world.
Coinciding with federal efforts, state policymakers have taken bipartisan legal and regulatory action. Most measures involve stopping the importation of Russian alcohol, such as in Arkansas and Iowa, and divesting from Russian assets, as is underway in California, Pennsylvania, and West Virginia. Multiple state legislatures also have passed resolutions expressing their strong support for Ukraine and endorsing the response of the federal government (Table 1). Some of these resolutions, such as those in Missouri, South Carolina, and South Dakota, alsoencourage the federal government to provide weapons and military assistance to the government of Ukraine.
In Arkansas, alcohol distributors are no longer acquiring alcoholic beverages from Russia “in an effort to support the U.S…sanctions upon Russia,” according to the director of the Department of Finance and Administration. While existing stock will not be destroyed, alcohol distributors will not import additional product. Governor Asa Hutchinson is urging private companies in the state to consider these sanctions. Governors of Iowa and New Hampshire have followed suit and ordered the removal of Russian-produced alcohol products from their state-run stores and wholesale lists.
In Missouri, Lt. Gov. Mike Kehoe announced a bill that would require entities receiving public funding to suspend contracts with Russia. He also urged all businesses to stop selling Russian products and offered stores lists of alternative items. Strategic divestment of Russian holdings also is being discussed. Other states working to remove Russian alcohol and other products from shelves and halt imports include Tennessee and Virginia.
The second major sanction involves withdrawing investments in Russian assets. Earlier this month, Connecticut Treasurer Shawn Wooden made the decision to zero-out Russian investments from retirement plans and pension funds. Current government debt issued by Russia and investments in Russian companies add up to $218 million in the state. While Wooden’s motivation is to support Ukraine, he also sees this action as important to “protecting the long-term viability of [Connecticut’s] investments” and economic stability, as the national and global sanctions imposed against Russia make it a volatile market for investment. With similar intentions, California Senate Majority Leader Mike McGuire announced that bipartisan legislation would soon be introduced to divest from all Russian assets, totaling over $1 billion.
The Idaho House State Affairs Committee voted recently on a resolution to sell $1.2 million of investments in Russia from Endowment Funds and roughly $300,000 in worker’s compensation funds. Colorado’s pension fund will remove $7.2 million from a Russian bank, Sberbank, which holds the majority of the $8 million Colorado has invested in Russian-owned companies. Similarly, New York’s Police Pension fund is in the process of withdrawing over $42 million in securities investments by Russian companies. Other states in the process of divesting Russian investments include Indiana, Kansas, Maryland, Montana, North Dakota, Pennsylvania, and Virginia.
In addition to these tangible maneuvers, multiple states have made symbolic gestures to show support for Ukraine. Notable sites such as Washington D.C.’s The Kennedy Center, San Francisco City Hall, The Lincoln Center in New York, Big River Crossing in Memphis and Niagara Falls have been illuminated in blue and yellow: the colors of the Ukrainian flag. Maryland went a step further and, on February 28, terminated ties with the Leningrad region in Russia. These sister-city ties were established to promote peace through local government connections in 1993.
Table 1. Passed and proposed legislation expressing support for Ukraine
State | Bill | Status | Summary |
Alaska | Senate Joint Resolution 25 | In Progress | Sanctions and export controls |
Arkansas | Senate Concurrent Resolution 2 | In Progress | Endorses sanctions and supports withdrawing investments |
California | Senate Bill 1328 | In Progress | Withdraws investments |
Colorado | Senate Joint Resolution 22-004 | Enacted, March 1 | Endorses sanctions |
Delaware | House Resolution 53 | Enacted, March 8 | Economic sanctions |
Georgia | Senate Resolution 603 | In Progress | Commits to imposing sanctions and divesting investments |
Hawaii | House Resolution 32 | In Progress | All business and government contracts with the Russian and Belarusian governments and contractors to cease, along with all work-related travel to Russia or Belarus; all sister-city or state relations will be terminated |
Idaho | House Joint Memorial 6 | Enacted March 8 | Endorses sanctions |
Illinois | House Joint Resolution 72 | In Progress | Sanctions and coordination of resources for Ukrainian refugees |
Maryland | House Bill 1482 | In Progress | Endorses sanctions and supports withdrawing investments |
Michigan | Senate Resolution 111 | Enacted March 1 | Endorses economic sanctions |
Missouri | House Resolution 75 | In Progress | Endorses strong sanctions and the provision of weapons |
New Jersey | Senate Resolution 88 | In Progress | Endorses economic sanctions |
Ohio | House Resolution 195 | Enacted March 2 | Expresses support for Ukraine |
Pennsylvania | House Resolution 175 | In Progress | Divests funds and severs ties with banks, brokerage firms and investment companies |
Rhode Island | Senate Resolution 2429 | Enacted March 1 | Supports federal response |
South Carolina | Senate Bill 1112 | In Progress | Supports financial sanctions and the barring of Russian planes from entering European Union and Canadian airspace; Encourages the provision of weapons of Ukrainian Armed Forces |
South Dakota | Senate Resolution 702 | In Progress | Endorses strong sanctions and military assistance |
Tennessee | Senate Joint Resolution 1147 | In Progress | Endorses an import ban, divesting investments, and sanctions |
Virginia | Senate Joint Resolution 189 | In Progress | Endorses economic sanctions |
West Virginia | Senate Bill 730 | In Progress | Withdraws investments |