Holyrood is being urged to cut ties with a sanctioned Russian bank linked to MSPs’ £300,000 pension fund.
Labour demanded links with Moscow finance firm Sberbank were severed immediately as international fury continues over Vladimir Putin’s invasion of Ukraine.
Sberbank is one of Russia’s largest state banks – but it has been hit by sanctions from US President Joe Biden.
Nicola Sturgeon backed penalising Mr Putin’s regime for the invasion last week as she called for Westminster to go further.
She said the Kremlin must “face the severest consequences” for their actions.
Certain Russian banks have also been banned from using an international banking payments system known as Swift.
Sberbank share prices collapsed over the weekend as Russia is punished for their incursion into Ukraine.
Holyrood’s link, revealed by investigative site The Ferret, shows the Scottish Parliamentary Pension Scheme has a stake totalling £299,571 in the Moscow finance firm.
‘Inappropriate’ investment
Holyrood politicians said it was “inappropriate” for the parliament to retain its stake with the Russian bank given the ongoing war.
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.”
Meanwhile, Green MSP Ross 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.”
The Trustees agreed in March 2021 that all future pensions contributions would be invested in a sustainable, ethical fund.”
– Scottish Parliament spokesperson
Tory minister Jacob Rees-Mogg’s investment firm previously had shares in Sberbank worth £44.5 million, but they were sold off as the Ukraine crisis ramped up.
A parliament spokesperson 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 SPPS 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.”
Last night Nicola Sturgeon called for the UK Government to lift all Visa requirements for Ukrainians trying to flee to Britain.
She wrote: “The @ukhomeoffice must immediately lift visa requirements for any Ukrainian seeking refuge here.
“Give entry now on humanitarian grounds & sort paperwork later. Ireland has already enacted such an approach.”