Hartford treasurer exploring divestment of Russian assets from pension fund; council weighs resolution

The Hartford Treasurer’s office is moving to divest the city’s billion-dollar pension fund from Russian-owned assets, while the city council is set to consider a resolution supporting the measure and calling on Hartford to impose further sanctions.

The move comes as states, cities and businesses across the world take steps to squeeze Russia in response to the country’s unprovoked invasion of Ukraine.

In addition to asking the city treasurer to investigate the extent of Russian assets in the city’s pension fund, the resolution would formally condemn Russia for the attack and will ask the city to take “whatever actions it can to impose economic sanctions upon Russia.”

“It’s not a totally symbolic gesture, but it’s filled with symbolism to show our solidarity and support for the sovereignty of this nation [Ukraine],” said John Gale, the Hartford city council member who wrote the resolution.

Adam M. Cloud, Hartford’s city treasurer, said his office is already exploring “any and all exposures” to Russian assets through the city’s investments. Cloud met with consultants last week and spoke to staff Monday morning about divestment, he said.

“Number one, the city of Hartford treasurer’s office and the pension fund stand behind the Ukrainian people and denounce the horrific actions of the Russian government with regards to Ukraine,” Cloud said.

Cloud said he does not believe the city has “any significant exposure” to Russian assets, and his office is working to ensure that is the case.

“And if we do [have exposure], we will be moving precipitously toward a full disengagement with any Russian investments,” Cloud said.

The city of Hartford’s pension fund is worth about $1.13 billion, and contributes about $55 million to the $120 million total the city makes in benefit payments each year.

If the pension fund is found to be invested in Russian assets, divestment could be complicated. The Russian stock market has been frozen since the invasion began, making it impossible for investors to sell their holdings.

The MSCI Emerging Markets Index, which lists emerging markets like Russia, Brazil, China and India, cut out Russian equities last week. Meanwhile, the London Stock Exchange has suspended trading in some Russian firms.

It isn’t clear when the Russian stock market will reopen, or how significant losses could be when it does.

Gale said he will file the resolution with the city clerk’s office Tuesday morning. It will then be added to the agenda for the council’s next meeting on Monday, March 14.

In addition to Gale, of the Hartford Party, the resolution will be introduced by Council President Maly D. Rosado and council members Tiana Hercules, Nick Lebron, Marilyn Rossetti and James Sanchez.

“The world is watching, as to what’s going on in Ukraine,” said Lebron, a Democrat. “Obviously, our funding may not have investments on a global scale, but whatever it is, it shows a form of solidarity. Not only as a country, but as a community.”

“Hartford is a community full of immigrants, and we do have Ukrainian residents and people who have immigrated from there to here,” said Hercules, of the Working Families Party. “It does show them that we’re supporting them and their families who aren’t here, who are still [in Ukraine] and dealing with the things that are going on on the ground.”

“I think if more communities stand up and do the same, I think that sets a loud and clear message that we don’t stand for this in 2022,” Hercules said.

Last week, state Treasurer Shawn T. Wooden announced Connecticut will join with California, Georgia, Oregon, Pennsylvania and other states in a move to divest state assets from Russia.

“Eliminating our holdings of Russian assets is not only a moral imperative but the current crisis also constitutes a substantial risk for Connecticut’s investments, our national policy and economic security,” Wooden said at the time.

In New York City, trustees of the city’s employee retirement system voted last week to approve divestment from Russian companies.

The City of Hartford Pension Commission next meets on March 25.

Seamus McAvoy may be reached at smcavoy@courant.com