Norwegian Sovereign Fund to Target Selective Russian Divestment

Norway's central bank suggests ending restrictions on its sovereign wealth fund's Russian investments, allowing strategic divestments as opportunities arise. A halt was imposed post-Ukraine invasion in 2022. The fund holds $135.71 million in Russian assets and has further holdings in Russian roubles due to accrued dividends.

The Norwegian government is facing calls to allow its sovereign wealth fund to resume partial sales of its Russian portfolio. This request comes from the Norwegian central bank, which oversees the fund.

In February 2022, following Russia's invasion of Ukraine, the Norwegian finance ministry froze transactions involving Russian assets. However, its goal remains the eventual divestment of all holdings. The central bank, in a recent statement, believes the fund should capitalize on divestment opportunities as they emerge.

The fund, which is the world's largest, valued at $1.8 trillion, had Russian assets worth $3 billion at the end of 2021. The central bank estimates these interests now stand at $135.71 million, plus additional holdings of Russian roubles from recent dividends.

(With inputs from agencies.)