The Norwegian government has instructed Norges Bank Investment Management (NBIM) to immediately freeze all Russian investments in the Government Pension Fund Global (GPFG) and prepare a plan for complete divestment.

It is the latest in a string of institutional investors to announce plans to divest from Russia due to its invasion of Ukraine, following action already taken by the Swedish Pensions Agency and AkademikerPension.

Russia is now subject to broad international sanctions, which Norway supports. In addition, the government considers this situation so extraordinary that it is appropriate to instruct NBIM to fully divest the fund from the Russian market.

“This decision is a clear signal to Russia. We strongly condemn the serious violation of international law they are now committing,” Norwegian Minister of Finance, Trygve Slagsvold Vedum, (the Centre Party), said.

The divestment shall be executed in line with the current sanctions. The sanctions will be legally binding for NBIM. However, yesterday Russia announced a unilateral ban on the sale of shares on the Moscow Stock Exchange. Therefore, the Norwegian government said the sale of shares may require some time.

“It is important for the legitimacy of both Norway and the fund that we, together with the international community, demonstrate a clear position by withdrawing the Norwegian savings from the Russian market,” Slagsvold Vedum said.

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