Gov. Whitmer recently asked the state board to divest Michigan from Russian assets. | Governor Gretchen Whitmer/Facebook
Gov. Whitmer recently asked the state board to divest Michigan from Russian assets. | Governor Gretchen Whitmer/Facebook
The State of Michigan Investment Board has approved stripping Russia- and Belarus-based companies of their State of Michigan Retirement Systems (SMRS) pension plans.
The move comes on the heels of Gov. Gretchen Whitmer calling for a special meeting to examine methods to disassociate any organization with ties to those countries of funds, a press release from the Michigan Department of Treasury said on Wednesday. The state board will begin the divestments when it's reasonable to do so.
"Today, the board decided this action is more than the right thing to do," said State Treasurer Rachael Eubanks, chairperson of the State of Michigan Investment Board. "We have directed the investment team to begin the divestment process. Any state assets that could be used to support and prolong Russia's war against Ukraine runs contrary to the purpose of providing benefits to individuals who dedicate their professional lives to public service."
The SMRS portfolio holds over $98 billion, and 0.06% of state pension assets are linked to Russian organizations, the press release said. The portfolio contains no Belarusian assets.
"The actions taken by State Treasurer Eubanks and the State of Michigan Investment Board today are a signal to the world that Michigan stands firmly in solidarity with Ukraine," Whitmer said in the release. "Thank you to Treasurer Eubanks for taking this important step today."
External investment managers control Russian assets that are usually spent on cheap international stock index funds, the press release said. Those funds directly own the Russian assets.
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