1 min read.Updated: 22 Jun 2021, 05:00 PM ISTGwladys Fouche, Reuters
Adani Ports, India's largest port operator, has been under scrutiny from international investors over its project to build a container terminal in the city of Yangon on land leased from a Myanmar military-owned conglomerate
OSLO: Norwegian pension fund KLP is divesting from Adani Ports and Special Economic Zone Limited on the grounds the company's links with the Myanmar military breach the fund's responsible investment policy, KLP told Reuters on Tuesday.
Adani Ports, India's largest port operator, has been under scrutiny from international investors over its project to build a container terminal in the city of Yangon on land leased from a Myanmar military-owned conglomerate.
A military coup in Myanmar on Feb. 1 and an ensuing crackdown on mass protests in which hundreds have been killed has drawn international condemnation and sanctions on military figures and military-controlled entities.
"Adani's operations in Myanmar and its business partnership with that country's armed forces constitutes an unacceptable risk of contributing to the violation of KLP's guidelines for responsible investment," KLP said in a statement to Reuters.
A spokesperson for the Myanmar military did not answer calls from Reuters seeking comment.
KLP, Norway's largest pension fund, had an investment worth nine million crowns ($1.05 million) in Adani Ports at the time of its decision, it told Reuters.
It was divesting because the container terminal is being built on land owned by the Myanmar military and that there is an "imminent danger" the armed forces could use the port to import weapons and equipment, or as a naval base.
"In this way, the port could be used by the army to continue its violations of human rights," KLP said.