AK SB235

Prohibits state fund commissioners and fiduciaries from investing in Russian sovereign debt and publicly traded securities of companies identified by the U.S. Department of Treasury, Office of Foreign Assets Control, as being owned/controlled by the Russian government or operating in Russia's financial services sector, excluding the Alaska Permanent Fund and Alaska Retirement Management Board.

Requires divestment of any existing holdings in restricted Russian assets within 180 days of identification by federal authorities, with outside investment managers directed to divest within 180 days of fiduciary instruction.

Exempts commingled investments and index funds from divestment requirements but requires annual letters to investment managers requesting consideration of divestment from identified assets.

Prohibits state funds from conducting business with financial institutions identified as profiteering from Russia's invasion of Ukraine, with exceptions if fiduciary duties or other legal obligations would be violated, requiring consideration of at least three alternative investment opportunities.

Provides immunity and indemnification from liability to commissioners, fiduciaries, agents, investment managers, and related personnel for actions taken in good faith to comply with divestment and investment restrictions, with the entire provision set to expire July 1, 2023.