WASHINGTON, Dec 13 (Reuters) - Despite Bush administration opposition, the U.S. Senate gave a green light to a grass-roots effort urging investors to withdraw their funds from companies doing business in Sudan because of violence in its Darfur region.
The Senate approved legislation on Wednesday letting U.S. state and local governments, as well as mutual funds and private pension funds, divest their investments in companies involved in four Sudanese business sectors including its oil industry.
Activists have pressed investors to divest their holdings in companies such as PetroChina Co. Ltd (0857.HK: Quote, Profile, Research), whose parent company, China National Petroleum Corp, is helping Sudan drill for oil. Malaysia's state-owned Petronas [PETR.UL] and India's Oil and Natural Gas Corp Ltd ONGC.Bo are also targets.
U.S.-based Capital Research & Management Co, Lazard Asset Management Co Ltd, and Blackstone Asia Advisors Ltd, were among the top 10 largest institutional holders of ONGC shares as of the end of September, according to Reuters Company Views.
The same data base showed Capital Research & Management Co, Barclays Global Investors NA and Vanguard Group, Inc were among the top 10 investors in PetroChina Co. Ltd. joined by units of California-based Franklin Templeton Investments and FMR Corp, better known as Fidelity Investments.
The bill, aimed at pressuring the Sudan government to end the violence in Darfur, now goes to the U.S. House of Representatives, where a vote is expected soon.
But it is uncertain if President George W. Bush would sign it. The U.S. State and Justice Departments have argued the measure would interfere with presidential foreign policy.
Sudan has been the focus of grass-roots divestment activism because of the conflict in its Darfur region, which has taken some 200,000 lives since rebels took up arms against the government in 2003. Khartoum mobilized proxy Arab militia to help quell the revolt, and the United States says the resulting violence amounts to genocide.
The fact that Bush was against this makes me wish it were 2008.
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