Conflict arises between Norway's national investment fund and the United States regarding bulldozer transactions
The Norwegian Sovereign Wealth Fund, the world's largest with assets worth over $1 trillion, has made a significant decision to divest from Caterpillar due to ethical concerns. This fund, established by the Ministry of Finance to ensure investments align with parliamentary ethical standards, holds stakes in about 8,400 companies globally, with over half of its assets invested in the US.
The central bank's board, which makes divestment decisions based on recommendations from the Council on Ethics, determined that Caterpillar's bulldozers, sold by Israel in Gaza and the West Bank, raise ethical issues under the fund's guidelines.
Caterpillar, a major American corporation, has not responded to the fund's divestment decision. The fund's CEO, Nicolai Tangen, previously dismissed asset seizure as any credible risk. However, some Norwegian pundits have raised concerns about potential risks to the fund's US assets, including potential seizure or forced debt swaps.
This decision has caused tensions between Norway and the US. US Senator Lindsey Graham, a close ally of President Donald Trump, has described the Norwegian fund's move as "offensive" and suggested potential trade tariffs or visa restrictions for the fund's managers.
In response, Norway's Prime Minister Jonas Gahr Stoere has contacted Senator Graham regarding the matter. It is worth noting that the fund operates independently from the Norwegian government.
The Norwegian Sovereign Wealth Fund's investments in the US include equities, Treasuries, and real estate. The fund owns 1.5% of all listed stocks globally, making it a significant player in the global market.
Despite the tensions, the Norwegian Sovereign Wealth Fund remains committed to its ethical guidelines, ensuring that its investments align with the highest standards of ethical conduct. The decision to divest from Caterpillar underscores the fund's commitment to these principles, even in the face of potential international tensions.
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