Norwegian Sovereign Fund Sparks Diplomatic Tension with U.S.
Norway's decision to divest from Caterpillar due to ethical concerns has led to diplomatic tensions with U.S. Senator Lindsey Graham. Graham warned of possible U.S. trade tariffs, highlighting the vast U.S. investment of Norway's sovereign fund. The fund's moves are governed independently from the government.
Norway's $2 trillion sovereign wealth fund has found itself at the center of a geopolitical controversy after deciding to sell all its shares in construction giant Caterpillar. The decision, grounded on ethical concerns about Caterpillar's products used by Israel, has drawn the ire of U.S. Senator Lindsey Graham.
Graham, known for his strong alliance with former President Donald Trump, warned Norway of potential repercussions, including trade tariffs and visa restrictions for fund managers. Despite these threats, Norwegian officials emphasized that the divestment decision was independent and aligns with established ethical guidelines.
With over half of the fund's assets held in the U.S., questions arise about the future of Norway's investments amid political unpredictabilities. However, fund CEO Nicolai Tangen has expressed no concerns about credible risks like asset seizure.
(With inputs from agencies.)
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