Norwegian Government Pension Fund Global (GPFG), which is the biggest Sovereign Fund in the world, has the Russian papers worth $8.2 billion and is not going to sell these assets, despite the confrontation between Russia and the West. In quarter 2, 2014 the Fund’s investments into the Russian shares even increased: their share in GPFG portfolio increased from 0.6% to 0.7%, returning to the last year’s level, reads the Fund’s report released today.
The report does not reflect the events after June 30 when Malaysia Airlines passenger plane was shot down over eastern Ukraine and US and EU imposed first sanctions against Russia. But GPFG head Ingve Slingstad said today that the Fund is not going to sell the Russian assets, but it is not going to change them either.
Unlike other countries, a separate section in the presentation of the report for quarter 2, 2014 is devoted to Russia. GPFG said in April 2014 that it is going to revise the risks related to the Russian investments and at the end of July Norwegian Finance Ministry made it clear that the Sovereign Fund will join the sanctions against the Russian companies (Norway joined the EU sanctions last week).
By early 204 GPFG held shares of 65 Russian companies, including Saving Bank ($370 million) and VTB ($887 million), which fell under the EU sanctions at the end of July.
