MSPs are piling pressure on their pension fund to disinvest from a state-owned Russian bank sanctioned in the wake of the invasion of Ukraine.
The Scottish Parliamentary Pension Scheme includes a £300,000 stake in Russia’s largest financial institution, Sberbank, which has been targeted by the US Government.
The holding, exposed by the Ferret investigative website, has now propted cross-party calls for Holyrood’s pension fund manager, Baillie Gifford, to ditch the shares.
Green MSP Ross Greer today lodged a motion at the parliament condemning the financial link to President Vladimir Putin’s regime.
The text “urges the trustees of the Scottish Parliament Pension Fund to immediately divest its holdings in Sberbank and to review all current fund investments to ensure compatibility with Scotland’s commitment to be a rights-respecting nation”.
Mr Greer said: “I cannot fathom why the Scottish Parliament Pension Fund has holdings in Sberbank in the first place.
“But, in light of the Russian invasion of Ukraine it is clearly inappropriate for that to remain the case.
"Some trustees of the fund have resisted ethical investment policies for too long but I’m sure most MSPs and former MSPs will want this urgently addressed and Sberbank immediately divested from.
“Colleagues who support this proposal should sign my motion as soon as possible and speak directly to the trustees.”
An FoI request by The Ferret revealed the pension scheme for MSPs had holdings of £299,571 in Sberbank, which runs accounts for half of all Russians.
After President Putin’s attack on Ukraine, US President Joe Biden stopped Sberbank from trading in dollars in order to affect its “fundamental ability to operate”.
All US financial institutions were ordered to close any Sberbank accounts they maintain within 30 days and reject future transactions involving Sberbank or its subsidiaries.
The UK sanctioned other Russian financial institutions and individuals, but not Sberbank.
Labour MSP Pauline McNeill said: “Given the magnitude of the situation we must shut down the corrosive effect of Russian finance in the UK.
“We must do all we can and ask for withdrawal of these investments as a matter of urgency. It has been raised with fund administrators.”
Scottish Liberal Democrat MSP Willie Rennie added: “Scotland needs to play its part in putting the squeeze on Putin and his regime and that means using the financial leverage we have.
"In the grand scheme of things this is not a huge sum of money but it is important to send a message that Putin’s behaviour in Ukraine will not be tolerated or supported.”
Holyrood said the investment decisions on the pension fund lay with its managers.
A spokeperson said: “The trustees agreed in March 2021 all future pensions contributions would be invested in a sustainable, ethical fund that excludes companies that contravene UN principles on human rights, labour, the environment and anti-corruption.
“The Scottish Parliament Pension Scheme invests in pooled funds with Baillie Gifford.
“It is one of a number of investors in the funds, therefore beyond these ethical conditions, the trustees cannot direct Baillie Gifford in their investment strategy.”
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