Norway blocks Rolls-Royce's assets sale to Russia over 'national security' concern

rway on Wednesday tified domestic engine maker Rolls Royce Holdings that it was halting sales of its Bergen Engines to Russian owned by TMH group due to security implications. rway's National Security Authority (NSM), a supervisory and protective authority for government of rway to counter threat, tified Rolls Royce that it was examining planned sale to Russia under Security Act. 

‘ government has been exploring this issue over past few months, and it cant be ruled out that sale of Bergen Engines AS to TMH Group may pose a risk to national security interests,’   National Security Authority (NSM) said in official release. 

Monica Mæland, Minister of Justice and Public Security, stated that decision of halting sale of assets to Russia was taken in order to procure sufficient facts and to enable assessment of change of ownership. Mæland cited national security risk that prompted ministration to pause deal. She stressed that rway’s National Security Authority (NSM) that operates under auspices of Ministry of Justice and Public Security, h stepped in.  

150 million euros ($178 million) deal

Last month, Rolls Royce struck a 150 million euros ($178 million) deal to sell its Bergen Engines AS to a company named TMH Group. It was later found that firm was co-owned by Russian billionaire Iskandar Makhmudov. rwegian government, which has tre embargo against Russia over Crimea situation in force, questioned security surrounding deal alleging transborder corruption.

Rolls Royce, meanwhile, clarified in a statement that it h alerted rway government ahe of sealing agreement for sale of Bergen Engines. A spokesperson for firm, Richard Wray told local reporters that w that rwegian government wants to investigate case, Rolls Royce ‘will cooperate’.  Russian firm TMH, which is based out of Moscow says on its official website that it is ‘biggest seller of rolling stock in Russia and former Soviet CIS states.’

‘In recent months, government has thoroughly investigated this matter, and it can’t be ruled out that a sale of Bergen Engines to TMH may entail a risk to national security interests,’ Justice and Public Security Minister Monica Maeland said in a separate statement. ‘ security situation means that we must pay particularly close attention to foreign investment in strategic sectors’, she warned.

‘In cases like this one, re will always be some elements that cant be discussed publicly. government is w working to map out all aspects relating to possible sale of Bergen Engines,’  Mæland said in NSM's press release.

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