Three democrats in the California Senate are urging the state not to invest employee pension funds in Russia as a protest against the country’s new law against promoting homosexuality to minors.
The non-binding resolution, was submitted to the state by Senate
President Daniel Steinberg, Senators Mark Leno and Ricardo Lara.
The document demands suspending “direct future investments in
Russia” by the California Public Employee Retirement System
(CalPERS) and the California State Teachers Retirement System
(CalSTRS).
"The anti-gay laws recently passed in Russia are an
unconscionable affront to LGBT people across the world, not just
those who live in that country,” Leno said in a statement.
“Californians cannot silently sit back and tacitly condone
these practices by continuing to invest in and support Russian
enterprises.”
Senators also asks the International Olympic Committee to provide
a written guarantee from the Russian state that visitors to
the 2014 Winter Olympics in Sochi will not be prosecuted under
the new Russian legislature.
June figures showed that CalPERS investment portfolio held 53.3
percent of its $266 billion fund in US and non-U.S. stocks.
CalPERS has $1.4 billion invested in Russia, according to Joe
DeAnda, a spokesman for the system.
“CalPERS is a strong defender of human and civil rights across
the globe,” DeAnda told LA Times. “CalPERS always strives
to be a responsible investor as we uphold our fiduciary duty to
our members and their retirement security. CalPERS will
continue its prudent review of all investments and will consider
current developments as it abides by all applicable laws.”
In July CalPERS created a joint venture with real estate company
to become the co-owner of a of 2.2 million-square-foot shopping
center in Moscow when it bought an interest in the Metropolis
Shopping and Entertainment Mall from Morgan Stanley Real Estate
Investing.
Meanwhile, the California State Teachers’ Retirement System is
the second largest public pension fund in the United States.
A law was passed earlier this summer in Russia which levies a
fine of up to 50,000 rubles (about $1,500 dollars) on any
individuals, and up to 1 million rubles (about $30,000) on any
organizations engaged in “propaganda of non-traditional
relationships to minors”.
Non-traditional sexual relationships were informally defined by
the lawmakers as those that cannot lead to the production of
offspring. Under the legislature foreigners engaged to such
activity would require to pay the stated fines and would be
automatically deported and may be detained for up to 15 days.