$ 74 billion loss to Norway’s state investment fund over Russian invasion of Ukraine

Norway’s state investment fund recorded its first quarterly loss since 2020, after Russia’s invasion of Ukraine and lockdowns in China disrupted markets, according to Bloomberg.

The Oslo-based fund lost $ 74 billion in the first quarter, according to a statement. It fell 5.2% in shares, where it has the largest share of its investments, and 4.8% in fixed income.

The world’s largest owner of listed companies was facing a worsening outlook ahead of Russia’s invasion of Ukraine, which hit world markets.

CEO Nicolai Tangen warned in January that growth over the past 25 years was unlikely to continue, with record interest rates hitting record highs and inflation seen as “high for a long time”. .

“The first quarter was marked by geopolitical turmoil, which also affected the markets,” Deputy CEO Trond Grande said in a statement.

Its unlisted real estate holdings rose 4.1%, although they represent less than 3% of its investments.

Norway decided on February 27 to withdraw Russian assets from the fund in response to the country’s invasion of Ukraine, but had problems with the actual implementation of the decision, after Russia banned foreign investors from trading on its stock exchanges.

Norges Bank said it would return with a recommendation to lift the freeze on the fund’s investments in Russia as soon as the markets function more normally, along with more detailed recommendations for making the sale.

The fund’s loss from Russian stocks could be just under $ 2.8 billion, according to estimates presented on March 3, with the holding estimated to be worth about 2.5 billion kroner (285 million kroner). from $ 27 billion at the end of last year.