Norway seeks to defuse clash with Trump ally over fund’s Caterpillar exit

By gwladys fouche

Oslo (Reuters) -Prime Minister in Norway said on Friday that he had contacted the American senator Lindsey Graham to try to defuse a controversy over a decision issued by the Norwegian sovereign fund to sell all his shares in the Caterpillar Building Group on ethics.

The sovereign wealth fund in Norway of $ 2 trillion, the largest in the world, said on Monday that it got rid of Catpeberler due to moral concerns due to the company’s supply of Israel from the bulldozers used in the occupation of Gaza and the West Bank.

Caterpillar did not comment on the wealth box step.

Graham, President Donald Trump’s ally, said on Thursday that Norway should reconsider its decision or the risks facing a new American commercial tariff for its exports or visa travel restrictions imposed on the fund’s directors.

“Your decision to punish Caterpillar, an American company, because Israel uses its products outside the attack,” he added.

About 52 % of the fund’s assets, more than $ 1 trillion, held in the United States as of June 30, spread in stocks, cabinets and real estate.

Arm length

The asset management is designed to be in my arms from the government, and the decisions made by companies that must be stripped by the Central Bank Council, which runs the fund.

The delivery of Catpeberler was determined based on the recommendation of the Ethics Council in the fund, a public body established by the Ministry of Finance to verify that companies in the fund’s portfolio meet with the moral guidelines set by the Norway parliament.

Foreign Minister Christopher Thoner of Prime Minister Jonas Junior Stewier said in a statement to Reuters.

He added, “The decision to exclude companies is an independent decision made by the Norses Bank Council, in accordance with the framework in force.”

“This is not a political decision.”

Thoner said that Graham confirmed that he had received the message.

Graham’s office did not immediately respond to the request for comment.

The Norwegian Fund, which was built from vast oil and gas revenues, is invested in about 8400 companies, and owns 1.5 % of all shares listed worldwide.

Some commentators in the northern European country asked whether there was, given uncertainty about economic policies under Trump, there may be a threat to the American assets of the fund, such as seizing assets or changing forced debts.