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Governor Newsom directs state agencies to ensure contracts comply with Russia sanctions, calls on California businesses and organizations to support Ukraine

Governor urges California businesses and organizations to take steps such as refraining from new investments and financial transactions with Russia and not transferring technology to Russian entities

SACRAMENTO — Governor Gavin Newsom today signed an executive order directing state agencies and departments to ensure that their contractors comply with economic sanctions imposed in response to Russia’s attacks on Ukraine. The action follows the governor’s letter this week calling on state pension funds to stop the flow of state money to Russia and ban the purchase of Russian debt.

Governor Newsom met today with the Consul General of Ukraine in San Francisco, Dmytro Kushneruk, to express California’s solidarity with the Ukrainian community and to discuss the state’s current efforts to support the people and government of Ukraine, as well as longstanding relations between California and Ukraine.

“California stands with Ukraine and the Ukrainian community in California – one of the largest in the country,” Governor Newsom said. “Our state shares many close ties with Ukraine and will continue its efforts to support the nation’s courageous fight for the fundamental rights and freedoms of its people.”

The executive order requires state agencies and departments within the governor’s administration to review their contracts for products, services, and technology and to terminate any contracts with entities subject to economic sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law.

The order further requires state agencies and departments to direct all recipients and contractors with agreements worth $5 million or more to report compliance with economic sanctions and the actions they are taking in response to Russia’s aggression in Ukraine, such as stopping financial transactions with Russian entities, not transferring technology to Russian entities, and supporting the government and people of Ukraine.

The governor also urges businesses, non-governmental organizations and public entities of the state to similarly review their investments and contracts to ensure compliance with economic sanctions against Russia and to take steps to support the government and the people of Ukraine.

California is the fifth largest economy in the world and home to major technology, manufacturing and business hubs. Many California companies have already taken steps to limit economic transactions with Russian entities, combat Russian misinformation and support Ukraine.

The text of the Governor’s Order is available here.

Governor Newsom this week sent a letter to leaders of the California Public Employees Retirement System, the California State Teachers Retirement System and the University of California Retirement System calling on funds to immediately restrict Russia’s access to any new capital and investment by the state, among other actions to support the people of Ukraine and protect the interests of Californians.

California and Ukraine share close ties, and the state is home to one of the largest Ukrainian populations in the country. California has a long history of welcoming Ukrainian and other refugees. As a state of inclusion and a beacon of hope for those seeking refuge, California will continue to be a welcoming place for refugees and stands ready to continue our partnership with the federal government as needed to support the resettlement of refugees fleeing Russian aggression in Ukraine.

The California National Guard and the U.S. government have a nearly three-decade relationship with Ukraine, working to support its Department of Defense, Department of the Interior, and Armed Forces by providing military equipment and training as well than humanitarian aid. For the past 20 years, the Governor’s Office of Emergency Services, along with the California National Guard and the California Emergency Medical Services Authority, have conducted training and exercises with the Ukrainian Ministry of Defense and Armed Forces on the use of emergency management and incident command. System.

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