R.I. treasurer finds selling Russian assets is easier said than done – The Boston Globe

PROVIDENCE — Rhode Island Basic Treasurer Seth Magaziner, who oversees the state’s pension fund and is now working for Congress, stated in late February that he’d goal to liquidate the state’s Russian inventory and bond holdings in response to Vladimir Putin’s invasion of Ukraine.

However three months later, no progress has been made and Rhode Island nonetheless holds its Russian belongings. Russia at first closed its inventory market after which, when it reopened, put prohibitions on gross sales by foreigners. These restrictions nonetheless haven’t eased, Magaziner’s workplace stated.

To Magaziner, these difficulties in promoting Russian belongings aren’t difficulties in any respect, however indicators that the financial stress Rhode Island and different buyers leveraged are working.

“The aim of Rhode Island becoming a member of the worldwide motion to impose financial sanctions on Russia is to inflict financial penalties on Russia for Putin’s conflict. It’s Russia that’s experiencing ‘difficulties,’ as they’ve been pressured to limit buying and selling on their monetary markets, making it tougher for Putin to fund his navy operation, state-owned firms, and corrupt community of oligarchs,” spokesman Benjamin Smith stated in an emailed assertion.

Magaziner declined to be interviewed on Wednesday, the identical day because the month-to-month assembly of the state’s pension funding fee, which he chairs. On the fee’s roughly hour and a half assembly, the topic of Russia didn’t come up.

The state’s Russian holdings in its pension fund by no means acquired above 0.3 p.c of the overall plan, in keeping with Magaziner’s workplace, about $20 million to $30 million. The funding fee voted in early March to promote Russian belongings “when doable” and bar and future purchases, however staffers additionally raised warnings in regards to the sensible difficulties, particularly as a result of the state’s Russian holdings are in funds managed by third events and commingled with lots of different non-Russian belongings. That made it onerous for Rhode Island to direct how they’re invested, funding officers stated on the time.

Just like the broader market, Rhode Island’s investments have taken a success of late. However Rhode Island’s pension fund has outperformed 98 p.c of public plans across the nation due to its “Again To Fundamentals” strategy, in keeping with Magaziner’s workplace.

Magaziner’s workplace stated it will nonetheless pursue divesting from Russian belongings.

“By becoming a member of different buyers internationally on this boycott of Russian monetary belongings, we’ve got helped to precise a toll on the Russian economic system and despatched a transparent message that Putin’s unlawful conflict is unacceptable,” Smith stated.

The state’s $10 billion retirement system serves about 60,000 lively and retired individuals, together with state employees, lecturers, sure native employees, state police, and judges.

Magaziner, a Democrat, is working in a September main for the Second Congressional District following U.S. Rep. Jim Langevin’s retirement. A latest 12 Information/Roger Williams College ballot discovered Magaziner with a commanding plurality among the many candidates within the main, with 33 p.c, however with the bulk nonetheless undecided. Former Cranston Mayor Allan Fung and Bob Lancia are vying for the Republican nomination.

Brian Amaral may be reached at brian.amaral@globe.com. Observe him on Twitter @bamaral44.