WEYMOUTH Cllr Howard Legg shocked councillor colleagues by questioning if the Dorset Pension fund had considered buying Russian investments after their global loss in value.

His comments came after the fund board was told that because of the current global situation it had written down £5million of assets it indirectly held in Russia as being worthless.

Cllr Legg said that he felt sure the council’s investment, through a global equities fund, would eventually improve in value and said he believed markets always rebounded.

“At the moment we have assets which are worth nothing at all and if other people have assets which are worth nothing, and I’m talking economically, not political please…wouldn’t it be worth buying those very cheaply from other people because they are going to exist anyway. We are not getting the Russian government to pay us back…

"I am just wondering whether it might be better to say, economically, well, they are going to exist we cannot kill them off totally, we might as well take ownership of them.”

Cllr Legg, who said that he was putting politics aside to talk about the economics of the pension fund, had earlier said that he was totally against what Russia were doing in Ukraine and President Putin, in particular, who he said he would like to “A bomb”, adding “but let’s not go there.”

His comments led to Cllr Andy Canning remarking: “Clearly Councillor Legg you like living dangerously.”

Financial advisor to the fund, Steve Tyson, said he would not be suggesting investing in anything which was Russian until the environment had totally changed - with a similar response coming from the Brunel partnership, which manages about two thirds of the £3.8 billion Dorset Pension fund.

Chesil Bank councillor Mark Roberts warned that Cllr Legg’s comments might cause reputational damage merely by the comment being made.

“I hope we don’t get there,” he said.

Bournemouth councillor John Beasley said it was “verging on the boundaries of acceptability” to talk about Russian investment.

“In today’s circumstances it is pretty much inappropriate. We have assets that are completely stranded and likely to have no realisable value and I cannot see, or foresee, a circumstance in which any pension fund in this country will be bringing fresh investment into Russia for many, many years, at the very least, and I hope we are not going to stray into that territory again.”

Speaking after the meeting Cllr Legg said he was not proposing buying Russian assets but wanted to know if the fund managers had considered all the options, including how the Dorset Pension Fund investment would be treated going into the future.

“I certainly wouldn’t invest myself at the moment and I’m not suggesting anyone else does. I just wanted to know what options had been considered.

“A lot of people hold Russian assets which are valueless now. A lot can’t sell them, but some might indicate a willingness to do so without it having any benefit at all to the Russian government. I’m certainly not proposing we do so, but I wanted to know what the options were.”

The Lib Dem Upwey and Broadwey councillor said his comments appeared to have been misunderstood by some at the meeting.