Decisions on exclusion and observation

The Norges Bank Executive Board has decided to exclude the company Bezeq The Israeli Telecommunication Corp Ltd due to an unacceptable risk that the company contributes to serious violations of the rights of individuals in situations of war and conflict, ref. the conduct-based criterion § 4 b in the Guidelines for Observation and Exclusion from the Government Pension Fund Global. 

The decision is based on a recommendation from the Council on Ethics of 30 August 2024.  

The Board has further decided to exclude the company Evraz PLC due to an unacceptable risk that the company contributes to serious violations of fundamental ethical norms, ref. the conduct-based criterion § 4 h in the Guidelines for Observation and Exclusion from the Government Pension Fund Global. Following Russia’s invasion of Ukraine in February 2022, the Ministry of Finance decided that the Government Pension Fund Global was to exit Russia. Evraz PLC is among the companies that were to be sold. However, due to sanctions and operational issues, the fund has not yet been able to sell this company.  

The decision is based on a recommendation from the Council on Ethics of 30 August 2024. 

Finally, the Board has decided to end observation of the company Hyundai Engineering & Construction Co. Ltd. The company has been under observation since July 2021 due to an unacceptable risk that the company has contributed to or been responsible for gross corruption. According to the Council on Ethics, the company has since implemented an anti-corruption system largely aligned with internationally recognized recommendations for such systems. Hence, the risk of gross corruption in the company’s operations is no longer considered unacceptable.  

The decision is based on a recommendation from the Council on Ethics of 8 October 2024.  

The Board has not independently assessed all aspects of the recommendations but finds it sufficiently substantiated that the exclusion and observation criteria have been fulfilled. Before deciding to exclude a company, Norges Bank shall consider whether other measures, including active ownership, may be better suited. The Board’s assessment is that it is not appropriate to use other measures in these cases.  

The Council on Ethics’ recommendations:

Bezeq The Israeli Telecommunication Corp Ltd
Evraz PLC
Hyundai Engineering & Construction Co Ltd