Norway's Sovereign Wealth Fund: Balancing Ethics and U.S. Relations

Norway's Finance Minister, Jens Stoltenberg, remains optimistic about preserving the current investment strategy of the nation's $2 trillion sovereign wealth fund, which is notably the world's largest. A significant portion of these assets, nearly half, are invested in the United States.

The Trump administration responded critically last week over the fund's recent divestment of its holdings in U.S.-based construction giant, Caterpillar. This decision was influenced by an ethics watchdog's advice, citing Caterpillar's role in supplying bulldozers used in contested Israeli territories.

Concerns have been raised by U.S. figures, including Senator Lindsey Graham, who warned of possible sanctions against Norway, suggesting implications like increased tariffs or restrictions on travel visas. Stoltenberg emphasized the Norwegian government does not review ethics recommendations for divestment, thus keeping political interference at bay.

(With inputs from agencies.)