Governor Newsom Orders State Agencies to Ensure Contracts Comply with Sanctions on Russia, Calls on California Businesses and Organizations to Support Ukraine  

Governor urges California businesses and organizations to take action 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 their contractors are complying with economic sanctions imposed in response to Russia’s attacks on Ukraine. The action follows the Governor’s letter this week calling for state pension funds to halt the flow of money from the state to Russia and to ban the purchase of Russian debt.

Governor Newsom today met with Consul General of Ukraine in San Francisco Dmytro Kushneruk to express California’s solidarity with the Ukrainian community and discuss the state’s current efforts to support the people and government of Ukraine, as well as California’s long-standing relationship with Ukraine. “California stands with Ukraine and the Ukrainian community in California – one of the largest in the country,” said Governor Newsom. “Our state shares many close ties with Ukraine and will continue our efforts to support the nation’s brave 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 commodities, services and technology and to terminate any contracts with entities that are 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 grantees, and contractors with agreements valued at $5 million or more, to report their compliance with economic sanctions and on the steps they are taking in response to Russia’s aggression in Ukraine, such as halting financial transactions with Russian entities, not transferring technology to Russian entities, and supporting the Ukrainian government and people.   The Governor is also urging businesses, non-governmental organizations and public entities in the state to similarly review their investments and contracts to ensure compliance with economic sanctions on Russia and to take actions in support of the Ukrainian government and people. California is the fifth largest economy in the world and home to major technology, manufacturing and trade hubs. Many companies in California have already taken steps to limit economic transactions with Russian entities, combat Russian misinformation and support Ukraine.

The text of the Governor’s executive order can be found here.

Governor Newsom this week sent a letter to the leaders of the California Public Employees’ Retirement System, California State Teachers’ Retirement System and the University of California retirement system calling for the funds to immediately restrict Russia’s access to any new capital and investments 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 Russia’s aggression in Ukraine.

California’s National Guard and the U.S. government have had a nearly three-decade relationship with Ukraine working to support its Ministry of Defense, Ministry of Interior and Armed Forces by providing military equipment and training as well as humanitarian assistance. Over the last 20 years, the Governor’s Office of Emergency Services, along with the California National Guard and the California Emergency Medical Services Authority, has provided training and conducted exercises with the Ukrainian Ministry of Defense and Armed Forces on utilizing the Emergency Management and Incident Command System.