Gov. Walz orders state agencies to cut ties with Russia

Gov. Tim Walz is directing more than two dozen state agencies to terminate any contracts with Russian entities, as states across the nation join the federal government in imposing sanctions on Russia following its invasion of Ukraine.

Through an executive order issued Friday, the governor also asked his cabinet to refrain from entering into contracts with Russian entities to "ensure that our state does not aid the Russian government's aggression against Ukraine."

"Minnesota stands firmly with Ukraine and strongly condemns the Russian government's actions," Walz said in a statement. "I encourage other individuals, companies and organizations to stand with their Ukrainian neighbors and end support to Russian entities."

Walz joins governors in roughly a dozen states who are reviewing or cutting financial ties with Russian companies. New York Democratic Gov. Kathy Hochul has ordered all state agencies and authorities to review and divest public funds from Russia. Some governors are ordering state liquor regulators and operators to stop the sales of Russian-made spirits, such as vodka.

There's support for state-level sanctions against Russia among some Minnesota legislators, including Rep. Rick Hansen, DFL-South St. Paul. Hansen tweeted earlier this week that he wants the state and the University of Minnesota to review its investments to determine if they are doing business with Russia.

President Joe Biden has directed U.S. financial systems to sever ties with Russia's largest banks and impose sanctions on Russian elites and their family members, while choking off many exports — including sensitive technologies — in an effort to hurt the Russian economy and military operations.

Under the order, a Russian entity is defined as any institution or company that is headquartered "or has its principal place of business" in the Russian Federation.

Walz spokesperson Teddy Tschann said that while state agencies must conduct a review, they expect there are "very few, if any" contracts with Russian entities. Agencies cannot enter into new contracts "unless the head of the state agency determines that there is no suitable alternative," according to the order.

At a press conference earlier this week, Walz rejected the idea of taking action against Russian college students studying in Minnesota, an idea that has been discussed by some members of Congress.

"Don't associate citizens with their governments in many cases," Walz said.

The governor's order instead urges Minnesotans to aid humanitarian efforts and support their Ukrainian neighbors as well as Russian Minnesotans, "many of whom are horrified and alarmed by the Russian government's aggression toward Ukraine."

The order is effective within 15 days of being issued and registered with the state, and will remain in place until the governor rescinds the directive.