Russia needs to ramp up liquefied natural gas exports to replenish Kremlin coffers and fund its war in Ukraine. Western pension funds may inadvertently be lending a hand.
Data compiled by investigative consultancy Data Desk and the Anti-Corruption Data Collective show that public retirement funds, including those managed by the states of Washington, New York and California, have indirectly invested in the specialized ice-class carriers serving Russia’s Yamal LNG — the country’s largest active gas export terminal and a vital piece of its efforts to replace its lucrative trade with Europe.
The Novatek PJSC-led Yamal operation in the Arctic isn’t sanctioned and there is no suggestion that the funds violated any rules. Still, at a time of heightened scrutiny for financial institutions, including from their own investors, the previously unreported link between U.S. investors and one of Moscow’s key sources of income is a reminder of the continued opacity of the global financial system. It also exposes the difficulties of cutting off President Vladimir Putin’s key sources of revenue — even more than two years after the invasion.