The Oil Fund is required to divest its holdings in Russia, but that is not possible at the moment, Norges Bank stated in a letter to the Ministry of Finance.
In line with the Ministry’s decision, Norges Bank has to sell all the Oil Fund’s investments in Russia. Due to closed markets and extensive sanctions, it is not possible to start the sale now, Norges Bank wrote in the letter.
The Oil Fund plans to notify the Ministry when the markets return to a more usual dynamic.
“We will then also make a more detailed recommendation on the implementation of the sale based on current sanctions and the Fund’s interests in general. The sale will have to take place over time,” it is further stated.
In February, Norway froze the Oil Fund’s investments in Russia in response to President Vladimir Putin’s invasion of Ukraine.
On February 28, the Ministry of Finance requested that Norges Bank come up with a plan to divest from the Russian market. The deadline expires on Tuesday, but Norges Bank has asked for more time.
At the end of 2021, the value of the Oil Fund’s equity investments in Russia was approximately NOK 27 billion, Norges Bank stated.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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