California governor orders agencies halt contracts to comply with Russia sanctions

California Governor Gavin Newsom Friday signed an executive order directing state agencies to review their contracts for commodities, services and technology and to terminate any contract with companies or individuals subject to sanctions because of Russia’s recent invasion of Ukraine.

Governor Newsom’s order required all state agencies and departments to review agreements of $5 million or more and to report their compliance with the sanctions and the steps they are taking in response to Russia’s aggression in Ukraine. These steps include halting financial transactions with Russian entities or not sending technologies to Russian entities.

The governor also asked non-governmental organizations and businesses to undergo similar reviewing procedures of their investments and contracts to ensure the utmost compliance with economic sanctions against Russia and to show adamant support of the Ukrainian government.

This executive order comes after the governor sent a letter to leaders of the California Public Employees’ Retirement System, California State Teachers’ Retirement System and the University of California retirement system, urging for immediate restriction of Russia’s access to any new capital and investments by the state. The governor has also made multiple statements of solidarity with the Ukrainian government and people: “California stands with Ukraine and the Ukrainian community in California – one of the largest in the country.”  Newsom noted that California “shares many close ties with Ukraine and will continue [its] efforts to support the nation’s brave fight for the fundamental rights and freedoms of its people.”