O’Scanlon: Murphy Administration Not Complying with Russian Divestiture Law

More than eight months since Governor Murphy signed bipartisan legislation sponsored by Senators Paul Sarlo and Declan O’Scanlon requiring the State Treasury to divest certain Russian holdings, the State appears to have done little in way of following the law’s requirements.

“It’s unconscionable that as Russia continues its illegal war in Ukraine, the Treasury Department appears to have no sense of urgency to comply with a law requiring them to cut economic ties with the invading country,” said O’Scanlon (R-13). “The people of New Jersey deserve answers. Governor Murphy signed this bill into law back in March and yet no meaningful action has been taken since. Adding insult to injury, we have no idea what is causing the delay because there has been a lack of transparency from the Treasury.”

O’Scanlon is calling on the State Investment Council to require Treasury officials to explain the lack of compliance with the law at their meeting on October 26 and to direct Treasury officials to ramp up its divestment activities.

The legislation, S-1889, was enacted by the Governor more than seven months ago on March 9, and requires the Treasurer to divest State holdings and investments that support Russia. The first step is for the Treasury to prepare a list of companies, businesses, and oligarchs that would be subject to divestiture and prohibitions of participating in public contracts. The bill required Treasury to release a first draft of the list within three months and updates every six months thereafter.

To date, an initial list has not been produced—according to a response to a recent request for the list. This indicates required divestments and prohibitions on government contracts have been delayed.

“This administration has made it more of a priority to sue oil companies who supply energy to the United States, and to divest from American companies like Smith & Wesson, than to divest from companies that prop up a Russian leader who violated international law by invading a sovereign nation,” added O’Scanlon. “The Treasury sleeps while Ukrainians are suffering, and they need to wake up and just follow the law the Governor signed—not only because it’s the law, but because common sense demands it.”

The State Investment Council meets for its next quarterly meeting on October 26.