DJ Norway Oil Fund Excludes Three Companies on Ethical, Environmental Standards

Norway7Helsinki, 30.01.14

Norway’s government said it had excluded Sesa Sterlite Ltd. (SSLT), Africa Israel Investments Ltd. (AFIL.TV) and Danya Cebus Ltd. (DNYA.TV) from the investment portfolio of the country’s USD 812 billion oil fund on environmental, and ethical established criteria.

The Norwegian Ministry of Finance said iron ore and copper producer Sesa Sterlite Ltd. was excluded due to “an unacceptable risk of serious environmental damage and serious violations of human rights” connected to its business in India.

Sesa Sterlite’s parent company, U.K.-based Vedanta Resources PLC (VED.LN), has been excluded from the fund’s investments since 2007, after the Norwegian government found its activities in India damaged the environment and injured people.

The ministry said it had excluded Africa Israel Investments Ltd. and its subsidiary Danya Cebus Ltd. because they contributed to “serious violations of individuals’ rights” through the construction of Israeli settlements in Eastern Jerusalem, which is considered illegal, according to Norway’s Council of Ethics and Advisory Board established in 2004 to advise the government on ethical investments.

Africa Israel Investments and Danya Cebus were previously excluded from the fund’s portfolio from August 2010 to August 2013 due to the construction of settlements in Israeli-occupied territories. The investment ban was lifted after Africa Israel Investments claimed it didn’t plan to build more settlements, but was reinstated after Danya Cebus confirmed that it’s doing construction in Eastern Jerusalem.

The ministry of finance also said it had ended a ban on Myanmar government bonds, but said the oil fund was now excluded from investments in government bonds from North Korea, Syria and Iran, should those countries decide to issue them.

The government declared the oil fund wasn’t a foreign policy instrument, and that it only banned investment in certain government bonds when required by international sanctions. The ministry of finance makes the final decision on the fund’s investment strategy.

Eleni Regli