Norway sovereign wealth fund excludes KOGAS, India's GAIL over Myanmar link
A general view of the Norwegian central bank, where Norway's sovereign wealth fund is situated, in Oslo, Norway, March 6, 2018. Reuters-Yonhap
The Norwegian central bank on Thursday excluded two oil and gas companies from its $1.4-trillion wealth fund, the world's largest, citing ethical concerns over their ties to the Myanmar military.
Korea's state-run Korea Gas Corp. (KOGAS) and Indian gas firm GAIL were excluded from the fund, Norges Bank said in a statement.
The two were excluded due to "unacceptable risk that (the) companies contribute to serious violations of individuals' rights in situations of war or conflict," the fund said.
"The background is the companies' business collaboration with an organization affiliated with the military in Myanmar," Norges Bank Investment Management (NBIM) said.
GAIL did not respond to a Reuters request for comment after market hours. KOGAS could not be immediately reached.
Norway's wealth fund operates under ethical guidelines set by parliament and excludes investments in companies that it says does not respect the guidelines.
At the end of last year, the fund held $5.5 million worth of shares in KOGAS, representing 0.21 percent of the outstanding shares, according to the fund's filings.
Norges Bank held $70.2 million in GAIL shares as of the same date, representing 0.92 percent of total shares in the company.
The Norwegian sovereign fund, formally called the Government Pension Fund Global and set up in 1996 to save petroleum revenues for future generations, owns about 1.5 percent of all globally listed shares.
Norges Bank holds stakes in more than 9,200 companies globally through the wealth fund. (Reuters)