Norway state fund ‘needs Russia approval to divest frozen assets’

Moscow — Norway’s sovereign wealth fund would need approval from the Russian government to divest frozen Russian assets inside Russia, Philipp Gabunia, deputy governor of Russia's central bank, said on Wednesday.

The Norwegian central bank, which manages the fund, said that Norway’s government should allow the country’s sovereign wealth fund to divest parts of its Russian portfolio when possible, and thus end a general freeze in place since 2022.

“If they want to sell in Russia, they must submit a request to our Russian governmental commission. Only after that will the matter be considered. Outside Russia, they can sell to another foreigner, but it will also remain frozen,” Gabunia said.

Gabunia said that the fund should have “compelling grounds” to receive such approval from the government.

The sovereign fund, the world’s largest with global investments of $1.8-trillion, has said it held Russian assets worth about $3bn at the end of 2021, though that value has since declined sharply.

The value of the fund’s Russian equity portfolio was estimated at 1.5-billion krone at the end of June, the fund has said.

The fund’s assets included stakes in energy giants Gazprom and Lukoil, Russia’s largest lender Sberbank, steel producer Magnitogorsk and many other private and state-controlled firms across many sectors. 

Reuters