North Carolina looks to terminate contracts that benefit Russia

North Carolina Gov. Roy Cooper has ordered all state agencies and departments under his control to review existing state contracts and terminate any agreements that benefit Russia.

Cooper issued Executive Order No. 251, a week after Russia’s invasion of Ukraine.

“The invasion of Ukraine is an attack on a free people. This order sends a strong message and helps ensure no public dollars or operations from North Carolina will benefit Russia and its unjustified aggression,” Cooper said after issuing Monday's order. “Our state stands in solidarity with the people of Ukraine as they fight courageously against a tyrant to defend their country, their democracy and their freedom.”

The order cited the unprovoked invasion that has “inflicted and will continue to inflict significant harm and suffering on the people of Ukraine,” and noted “Russia’s actions severely undermine global peace and stability.”

The order acknowledged thousands of Ukrainian Americans living in North Carolina and the deployment of troops from the Tar Heel State to the region, as well as U.S.-imposed sanctions on Russia in response to the war.

“North Carolina seeks to ensure that its actions do not aid Russia, whether directly or indirectly,” the order read.

“All affected state entities shall, as soon as practicable, review all existing contracts and operations to determine whether they directly benefit any Russian entities,” Cooper wrote. “To the extent that affected state entities identify contracts or operations that directly benefit Russian entities, the affected state entity is directed to take all reasonable steps to terminate that contract or operation.”

The order applied to “all state government agencies and departments over which the governor has executive authority, as well as all other state entities for which the governor appoints the chief executive or a majority of the board members.”

The document defined “Russian entity” as “any corporation, company, or other entity that is headquartered in Russia or has its principal place of business in Russia, including any wholly-owned or majority-owned subsidiaries of such corporations, companies, or entities.”

The executive order specifically cited alcohol sales controlled by the North Carolina Alcoholic Beverage Control Commission, as well as state contracts for goods and services.

“Currently available information from the North Carolina ABC Commission suggests that three alcohol brands – Hammer & Sickle, Beluga, and Russian Standard – would be subject to this Executive Order,” according to a Cooper statement that accompanied the executive order.

Cooper’s directive ordered state entities to refrain from new contracts with Russian entities, unless granted special permission.

“Affected state entities may enter into such contracts only if the head of the affected state entity determines in writing that the contract is necessary for the affected state entity to perform its work for the state and there are no suitable alternatives,” the order read.

Cooper also encouraged other state entities and local governments to follow suit.

“All other state entities and local governments in North Carolina are strongly encouraged to adopt similar policies to ensure that public dollars and operations do not directly benefit Russian entities,” Cooper wrote.

The executive order issued Monday followed similar measures in numerous states to boycott Russian vodka or divest from Russian companies. New Hampshire, Ohio, Utah, New York, Virginia, Texas, Pennsylvania, Alabama, Colorado, Georgia, Indiana, Maryland and other states have enacted measures to ban the sale of Russian goods in the past week.

Those measures are on top of sanctions imposed by the U.S. government, as well as similar directives from city officials across the country.