Hochul: New York State won't do business with Russian companies

New York State on Sunday joined governments across the world in issuing penalties to Russia for its unprovoked war against Ukraine.

The United States, the European Union and the United Kingdom on Saturday agreed to put in place sanctions on the Russian financial sector and, for the first time, restrictions on the Russian central bank in retaliation for its invasion of Ukraine.

Gov. Kathy Hochul, speaking during a news conference Sunday in Albany, said New York would divest state money from Russia-linked businesses until the federal government lifts its sanctions.

The governor signed an executive order directing the state Comptroller’s Office to review state investments and purchases and ensure that any of those related to companies headquartered in Russia, or Russian state-sponsored entities, cease immediately. The state also will refrain from similar future investments, she said.

"This is a strong statement," Hochul said shortly before signing the executive order. "It is a statement of our priorities. It's a statement of our values."

Hochul noted that New York has one of the largest populations of Ukrainians in America, as well as a larger economy than Russia, giving it unique economic leverage against the Russian government. When asked if New York would consider seizing assets of Russian oligarchs, Hochul said the state was "looking at all of our options."

It is not clear what kind of effect the restrictions could have on Russian President Vladimir Putin, who on Sunday announced he was putting his nuclear forces on high alert in response to what he called "aggressive statements" from NATO-member nations and the sanctions issued by the West.

But State Sen. Elijah Reichlin-Melnick (D-Nyack), who on Thursday said he planned to introduce a bill calling for actions similar to those included in Hochul’s executive order, noted that New York should not do business with a state that violates international law.

"New York State does not invest in or support companies that do business in North Korea or Iran, and Vladimir Putin’s reckless actions have now put Russia in the company of these rogue nations," Reichlin-Melnick wrote in a statement Thursday.

With AP

By Vera Chinese

vera.chinese@newsday.com@VeraChinese

Vera Chinese joined Newsday in 2017 after working as an editor for the East End lifestyle publication northforker and a general assignment reporter for the New York Daily News.