U.S. asset owners, their supervisors, and state legislative bodies are grappling with the impact of Thursday’s Russia’s invasion of Ukraine.

In Illinois, state Rep. Jim Durkin announced Thursday he would introduce legislation that would require the state’s five pension funds to divest from any holdings in Russian companies.

“This morning, we woke up to shocking images crossing our TV screens. People in cities throughout Ukraine huddled in subways and shelters while explosions shake their cities as Russian soldiers begin an invasion of their homeland,” Mr. Durkin said in a news release from his office. “Today, we must send a strong signal to these people that we stand with them and support their sovereignty — that the state of Illinois is prepared to do what we can to help.”

Overseeing the state pension funds’ investments are the $66 billion Illinois Teachers’ Retirement System, Springfield; the $29.1 billion Illinois State Universities Retirement System, Champaign; and the $24.7 billion Illinois State Board of Investment, Chicago, which manages the investments of the State Employees’ Retirement System, General Assembly Retirement System and Judges’ Retirement System.

Information on how much is held in Russian securities by the pension funds was not immediately available.

Allyson Tucker, CEO of the Washington State Investment Board, Olympia, which oversees $193.8 billion in assets including $156 billion in defined benefit plan assets, said in an email: “The troubling conflict created by Russia’s military attack on Ukraine is a stark reminder that geopolitical risk is not just an abstract concept in our investment strategy. Historic struggles over the global balance of power create uncertainty, and as long-term investors we must stay disciplined on behalf of our beneficiaries as the portfolios endure related market impacts. While we look at these developments through an investment lens, we also should not lose sight of the tragic human price that is paid.”
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