Ukraine invasion compelled Norway wealth fund to dump Russian assets
Author : Pankaj Singh | Published Date : 2022-03-01
Following Russia’s invasion of Ukraine, the former must brace for economic impact as it sees more and more sanctions against it. Norwegian prime minister Jonas Gahr Stoere recently announced that the country’s USD 1.3 trillion sovereign wealth fund will divest its assets in Russia.
The move comes just days after the sovereign wealth fund's chief executive Nicolai Tangen pointed out the difficulties of selling its Russian holdings.
As per the government, the Russian assets of the world’s largest fund, Norges Bank Investment Management, comprises shares in around 47 companies and government bonds which collectively amounted to 25 billion Norwegian crowns (USD 2.83 billion) at the end of 2021, a big drop from 30 billion browns the previous year.
As per Norges Bank Investment Management, the fund’s Russian assets held government bonds valued at 6.7 billion crowns and 23.3 billion crowns in equities at the end of 2020.
Credible sources cite that the fund’s most valuable stake in an individual firm at the end of 2020 was in Russia’s Sberbank, with 0.83% shares worth 6 billion crowns at the time. This also made it the fourth-largest shareholder. The second and third largest stakes at the end of 2020 were in energy corporations Gazprom and Lukoil, respectively.
Speaking in support of Ukraine, Stoere stated that Russia's attack on Ukraine is challenging Europe's security akin to the time of the Second World War. It goes against the norms, values, and principles that the democratic society is built on, he further added.
Meanwhile, western countries and companies are putting economic pressure on Russia by removing selected banks from the international SWIFT banking system. The British oil giant BP said that it is diluting its 20% stake in Russian state-backed oil major Rosneft.
Following these developments, the Russian stock market has seen a major dip, with the MOEX Russia Index declining to 35% this year.
Source credits –
About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
Related News
Bayers new CEO initiates management job cuts to accelerate decision-making
Bayer newly appointed CEO, Bill Anderson, has reportedly unveiled plans to streamline the companys management structure in a bid to expedite decision-making processes. This marks the first step in a broader effort to transform the embattled German company, which has been under pressure from inv... Read More>>
Smurfit Kappa in Merger Talks with WestRock worth $19 Billion
Smurfit Kappa, a prominent player in the packaging industry, is reportedly engaged in merger discussions with its US counterpart, WestRock. This prospective merger has the potential to create a cardboard box-making powerhouse boasting a market value approaching $19 billion (€17.8 billion). Furt... Read More>>
RBC plans job cuts to take on anticipated economic softening
The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third ... Read More>>