World's largest wealth fund gets nod to start selling Russian stocks blocked after 2022 Ukraine invasion

Norway’s sovereign wealth fund, the largest in the world with $1.8 trillion in assets, has received the green light to sell its holdings in Russian companies, provided such transactions comply with international sanctions, the country’s deputy finance minister said on Friday (December 6).

“Permission to sell the fund’s Russian stocks is given on the condition that the sale can be done in line with applicable sanctions,” Deputy Finance Minister Ellen Reitan said.

Limited path to divestment

The Norwegian finance ministry imposed a freeze on transactions involving the fund’s Russian assets shortly after Russia invaded Ukraine in February 2022.

At the time, it announced that divestment was the ultimate goal.

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However, the fund’s efforts to offload these holdings have so far been stymied by restrictions barring sales to entities under US or EU sanctions.

Norway’s central bank, which manages the fund, requested permission on Wednesday to sell portions of the Russian portfolio when opportunities arise, stating that isolated transactions were currently the only feasible way to reduce its exposure.

The fund’s Russian equity holdings were valued at approximately 1.5 billion Norwegian crowns ($135 million) at the end of June, a sharp drop from their pre-war levels.

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According to fund data, these assets include stakes in 49 Russian companies, with the largest positions in Sberbank, Lukoil, and Gazprom.

Some holdings in Russian firms listed outside Russia— such as Novatek, Yandex, and Evraz— could potentially be sold without requiring Moscow’s approval. However, the process for divestment of assets within Russia remains fraught with challenges.

Moscow pushes back

Philip Gabunia, deputy governor of Russia’s central bank, said any sale of assets inside Russia would require authorization from a government commission.

“If they want to sell in Russia, they must submit a request. Only after that will the matter be considered,” Gabunia said in an interview on Wednesday. He added that assets sold outside Russia would remain frozen.

With inputs from agencies