The pensions of 90,000 people across Norfolk are tied up in multi-million pound investments in companies linked to Russia and Belarus.
The Norfolk Pension Fund - which manages retirement savings for workers from more than 400 organisations - has a total of £12.5m invested in the firms.
Norfolk County Council, which runs the fund, is facing calls to disinvest in its Russian and Belarusian-linked assets, both in protest at Vladimir Putin's invasion of Ukraine, and because the shares are plummeting amid huge sanctions placed on the countries' economies.
But County Hall managers say they are still keeping the situation under review, despite the fact several councils in similar positions have already agreed to withdraw investments. They also argue it is not easy to rapidly disinvest in the firms.
The Norfolk Pension Fund is worth a total of £5bn and manages the retirement savings for 90,000 people who worked for hundreds of organisations, including various councils and schools.
The council confirmed, that, before the Invasion of Ukraine, the total exposure to Russian and Belarussian assets equated to around 0.25pc of the fund - around £12.5m.
Companies the fund has exposure to are oil and gas firms Lukoli, Rosneft, Gazprom, financial services Sberbank, TCS Group, chemicals company Phosagro and Novolipetsk Steel.
Shell is pulling out of its ventures with Russian-state owned Gazprom, while BP is selling its stake in Rosneft, which it co-owns with the Kremlin.
Some councils, such as Cornwall, have announced they will start to divest Russian assets from their pension funds.
But Norfolk County Council has yet to make that step, instead saying it is "monitoring" the position.
A spokesperson for the Norfolk Pension Fund said: "The invasion of Ukraine is an unacceptable act of aggression and we welcome the steps taken to sanction those responsible.
"Our exposure to the Russian and Belarussian markets is extremely limited, but we are actively monitoring our position alongside our appointed fund managers.”
The council says divestment is not a simple matter, with the majority of the investments made through multi-investor vehicles.
That means, legally, the assets are held by the these set-ups and the decision to buy and sell individual securities is made by the appointed fund management firm - so Norfolk fund managers cannot directly decide to disinvest.
The sanctions which have been put in place by western countries also inhibit sales of the shares, officers said, while any decisions to exclude certain assets would need a change to investment guidelines, requiring sign off with the Financial Conduct Authority.
However, no new Russian exposure will be added to the Pension Fund.
Should the Norfolk Pension Fund divest?
John Fuller, leader of South Norfolk Council and a member of the Norfolk pensions committee, said: "Our exposure is already limited, because Russian companies do not, historically, have good governance records.
"We have challenged some of our investment managers who have confirmed they are seeking to unwind their exposure to Russian assets in an orderly manner.
"What we do not want to do is place at risk pension pots which, far from being gold-plated, average about £4,700 a year."
But Steve Morphew, leader of the opposition Labour group at Norfolk County Council, said divestment should happen as soon as possible.
He said: "We cannot mess about and we should be setting an example.
"We should be divesting as soon as it is practical to do so."
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