The Norwegian central bank excluded two oil and gas companies from its $1.4-trillion wealth fund on Thursday, April 27. This was due to the companies ties to the Myanmar military.
South Korea’s state-run Korea Gas Corp (KOGAS) and Indian gas firm GAIL Ltd. were excluded from the fund, The Bank said in a statement.
The companies were excluded due to “unacceptable risk that they contribute to serious violations of individuals’ rights in situations of war or conflict,” the statement said.
Both companies are thought to have done business with an organization associated with the military in Myanmar.
GAIL did not respond to a Reuters request for comment after market hours. Korea Gas Corp could not be reached.
It’s is not the first time, that the fund has excluded companies for having ties to the Myanmar military. Earlier this year, the fund cut all ties to AviChina for selling weapons to the Myanmar military.
Norway’s wealth fund operates under ethical guidelines set by parliament. It excludes investments in companies that does not respect the guidelines.
At the end of last year, the fund held $5.5 million worth of shares in KOGAS and shares worth $70.2 million in GAIL.
The Norwegian sovereign fund was set up in 1996 to save petroleum revenues for future generations. The Norwegian Central Bank holds stakes in more than 9,200 companies globally through the fund.
Source: Channelnewsasia.com
