Guwahati: Sweden’s Council on Ethics of the AP pension funds has recommended the exclusion of Indian arms manufacturer Bharat Electronics Limited (BEL) due to its ‘continued sale of weapons to the Myanmar military’, as detailed in the Council’s 2024 Annual Report.
Bharat Electronics Limited (BEL) is a leading public-sector aerospace and defence company of India.
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The decision highlights BEL’s supply of radar systems, air defense weapons, radio systems, and military vessel equipment to the Myanmar military, both before and after the 2021 coup.
The Council cited reports from Justice For Myanmar (JFM), a local advocacy group, which documented BEL’s arms transfers, including over $5 million in military equipment in the six months ending April 2023, and a recent March 2024 shipment of radar console equipment.
Justice For Myanmar has welcomed the Swedish pension funds’ decision to exclude BEL over its Myanmar arms sales.
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“We welcome the move by Swedish pension funds to exclude BEL, which has been aiding the Myanmar military’s international crimes for years. This sends a strong message to BEL that business with the Myanmar military not only flouts international law. It’s also a bad investment,” said Yadanar Maung, a spokesperson for Justice For Myanmar.
The Council’s decision follows similar moves by Nordea Bank in 2021 and Norway’s sovereign wealth fund in 2023, both of which excluded BEL for its involvement in sales that violated international humanitarian law.
AP2, one of the Swedish pension funds involved, has already divested its holdings of over 359 million Swedish kroner (approximately $33.8 million) in BEL. However, AP7, another Swedish fund, continues to hold shares valued at over 289 million Swedish kroner (approximately $28.7 million) as of December 2024.
JFM is now calling on AP7 and all other investors to divest, citing BEL’s failure to uphold international human rights standards and the increasing legal and financial risks associated with these investments.
“AP7 and all other BEL investors should follow and immediately divest,” Maung stated.
JFM also criticized the Indian government, BEL’s majority shareholder, for its continued support of the Myanmar junta.
“This should be a wake-up call to the Indian government to finally end its transfers of arms and military equipment to the Myanmar military and abide by its obligations under international law,” Maung added.
Adani Ports Dialogue Concludes, JFM Expresses Dismay
In a separate development, the Council on Ethics announced the conclusion of its human rights dialogue with Adani Ports and Special Economic Zone (APSEZ) regarding its port investment in Myanmar with the military conglomerate Myanmar Economic Corporation (MEC).
The Council concluded that APSEZ exited Myanmar responsibly, but JFM expressed dismay at the lack of transparency surrounding the divestment.
JFM raised concerns about the secret sale of APSEZ’s Myanmar business to Solar Energy Limited, a company registered in Anguilla, a known secrecy jurisdiction.
They also highlighted past reports detailing APSEZ’s ties to the Myanmar military, including alleged kickbacks and involvement of other Adani businesses.
JFM is urging the Council to resume its dialogue with APSEZ and demand disclosure of the beneficial owners of Solar Energy Limited, as well as the human rights due diligence related to the divestment.