Norway's Wealth Fund Eyes Strategic Exit from Russian Investments

Norway's central bank urges the government to enable its enormous sovereign wealth fund to divest Russian investments. The fund halted transactions post-Ukraine invasion but seeks to seize divestment opportunities amid limited options due to sanctions. The fund's Russian holdings have significantly depreciated since 2022.

Norway's colossal sovereign wealth fund may soon be allowed to divest its Russian investments, following a suggestion by the country's central bank. This comes after a transaction freeze since 2022, as a response to Russia's Ukrainian incursion.

With $1.8 trillion in assets, the fund holds 1.5% of global shares but has been restricted from selling Russian assets due to sanctions. Nevertheless, the central bank advocates selling when market conditions permit, potentially lifting the freeze.

The fund's Russian asset value has drastically diminished, from $3 billion to an estimated $135 million by June's end. Sanctions have curtailed selling opportunities, but strategic moves are vital as geopolitical dynamics evolve.

(With inputs from agencies.)