Under new laws introduced in the state parliament, South Australian public funds and a public sector pension of $ 60 million can no longer be invested in Russian assets.
Prime Minister Piotr Malinauskas has promised to get rid of Russian Funds SA assets before the election.
His government on Thursday unveiled new laws to do so.
The move will bring the state into line with New Wales and Queensland, and Mr Malinovskas called it an “effective solution” to the moral and ethical issue.
He said it sent a strong message to Russian President Vladimir Putin that the SA condemned his “anti-democratic aspirations” for Ukraine.
“We cannot continue to invest the money of South Australians in Russia, given their shameful behavior in Ukraine, which we have all watched in horror,” said the prime minister.
“It would be unacceptable for state funds and state pensions to continue to be invested in Russian assets.
“I hope this bill can be passed quickly with the support of the two parties.”
Treasurer Stephen Mulligan said all South Australians had suffered from “Russia’s disgraceful behavior” that had affected inflation.
“It is clear that we will not continue any efforts that we have indirectly or directly made to the maintenance of state funds SA with any impact on Russian investment,” he said.
“This outrageous behavior of Russia costs us all money, and no one wants to be responsible for any support for Russia’s efforts … I don’t think that’s acceptable in our time.”
Sanctions imposed by the Australian government have forced Funds SA to start getting rid of Russian assets.