fidelity reduces investments in sudan

Fidelity reduces investments in Sudan

05-21-2007

Fidelity has sold 91 per cent of its American Depositary Receipts (ADRs) in Petrochina in the first financial quarter of 2007, Sudan Divestment UK confirmed.

Petrochina is a Chinese firm with significant links to the Sudanese oil industry and has contributed to a rapid growth in the African nation’s oil sector.

Fidelity did not give a specific reason for their decision to reduce their holdings in Petrochina, although it is widely believed the move follows increasing international unease with Sudan's oil industry.

Pressure group Sudan Divestment UK applauded the move but called on Fidelity to explain the reasons behind the decision.

Their Director Hamish Falconer said: “Fidelity has taken a bold step for which they should be applauded, but investors across the world want to know the full picture.

“Fidelity should confirm that this decision was taken in response to the situation in Darfur and that the decision will be implemented not only in ADRs but also in Petrochina holdings listed on the Hong Kong stock exchange.

Rolls Royce recently confirmed to Sudan Divestment UK, it intended to cease operations in Sudan citing 'humanitarian concerns', following similar moves by ABB and Siemens.