An investigative report by Data Desk and the Anti-Corruption Data Collective from July 2024 uncovered that public retirement funds in states like Washington, New York, and California have indirectly invested in companies tied to Russia’s energy exports, particularly through LNG projects such as the Yamal LNG initiative.
Western Capital Meets Russian Gas
The Kremlin aims to increase LNG exports as a strategy to fund its military operations in Ukraine, and new evidence shows that U.S. pension funds may be inadvertently supporting this agenda.
The aforementioned analysis uncovered a troubling financial link: U.S. retirement funds hold stakes in Stonepeak Infrastructure Fund IV, which in turn supports Russian gas exports.
Stonepeak, a New York-based investment manager, has made strategic investments in Yamal LNG by acquiring Seapeak LLC—a company owning ice-class tankers essential for LNG shipments from Russia’s Arctic region.
These tankers transport gas to key markets in Europe and Asia, providing a vital lifeline for Novatek PJSC, the operator of the Yamal project.
The Role of U.S. Pension Funds in Supporting Russian LNG Exports
Public pension funds such as the California Public Employees' Retirement System (CalPERS), one of the largest public pension funds in the U.S., whose ownership changes are being tracked monthly in TenderAlpha’s Pension Funds Stock Ownership Data Feed, have invested in Stonepeak’s Infrastructure Fund IV.
This fund has ownership stakes in the vessels transporting LNG from Russia, raising questions about the fiduciary duties of these pension funds.
CalPERS and other public funds are tasked with maximizing long-term returns for retirees and state workers, yet the nature of today’s interconnected financial system makes it difficult to separate ethical concerns from investment portfolios.
Over 30% of the 160 LNG shipments from Yamal in 2024 were carried out using Seapeak-owned tankers, underscoring the direct financial exposure U.S. pension beneficiaries may have to Russian energy operations.
When contacted, John Myers, Public Affairs Officer for CalPERS, acknowledged the complexities involved:
“We believe that investments in Russia present a substantial risk to our long-term investment success and have taken steps, in line with our fiduciary responsibilities, to divest these assets from our portfolio.”
However, the intricacies of modern finance mean that even with divestment policies, certain financial ties to Russian markets may persist due to indirect investments through infrastructure and private equity funds.
Despite public efforts to reduce Russian energy imports, the ongoing demand underscores the difficulties in cutting financial ties with Russia. It also reveals how retirement funds and other institutional investors may unknowingly participate in markets linked to geopolitical tensions.
Extracting Insights from Ownership and Trade Flows Data
Given the geopolitical challenges posed by these financial networks, investors and fund managers must leverage robust data solutions to assess their portfolios.
Tools like TenderAlpha’s Pension Funds Stock Ownership Data Feed allow users to identify pension fund holdings in companies that are possibly connected to Russian trade networks.
By using TenderAlpha’s data, fund managers can track specific investments that may involve risks associated with geopolitical tensions, sanctions, or disruptions in energy markets.
This data feed can be used alongside the TenderAlpha Global Import-Export Trade Data Feed, providing comprehensive insights into cross-border trade patterns.
For example, tracking the shipping activities of LNG carriers linked to Seapeak LLC or mapping which European countries continue to import Russian gas allows investors to proactively address risks in their portfolios.
Such data-driven strategies are crucial in an era where geopolitical shocks—such as the Russia-Ukraine war - can dramatically alter supply chains and financial returns.
Improve Transparency by Combining Alternative and Traditional Data
The connection between U.S. pension funds and Russian LNG exports serves as a stark reminder of the complexities and risks embedded in the global financial system.
As Western investors attempt to reduce their involvement in Russian markets, transparency, accountability, and reliable data will be key to making informed and responsible decisions.
Leverage TenderAlpha’s rich data suite, which includes both alternative and traditional datasets, to uncover hidden exposures, track cross-border investments, and assess the impact of geopolitical risks on portfolio performance. Get in touch to learn more!
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