Trafigura: Support for Sudanese regime

Trafigura is involved with Omar al-Bashir and the Sudanese government. In 2012, Trafigura upset relations between Sudan and South Sudan after purchasing oil from Sudan that allegedly came illegally from South Sudan. Several U.S. state-run retirement funds (e.g., in Kansas, Iowa, Colorado, and South Dakota) have excluded Trafigura from their investment portfolios due to the company´s ties to the Sudanese government, citing the Sudan Accountability and Divestment Act of 2007. The act authorizes “State and local governments to divest assets in companies that conduct business operations in Sudan” and prohibits “government contracts with such companies.” The Iowa Judicial Retirement System, for example, “[imposes] restrictions on Sudan related investments  [i]n response to the ongoing human rights situation in the Darfur region.” It requires funds to divest from companies that provide the Sudanese government with, e.g., power production, mineral extraction, oil, or military equipment. Through their divestment, states acknowledge Trafigura´s contribution to the region´s ongoing conflict and instability.

Rupert Neate (2012): “Trafigura in South Sudan oil row”, The Guardian.

US Congress (2007): Sudan Accountability and Divestment Act of 2007

Iowa Judicial Retirement System (2012): Annual Report on Sudan Divestment. For the Fiscal Year Ended June 30, 2012.

Case location
Sudan
Sudan


Affected topics
  • Human and Labour Rights
Directly and indirectly (through shareholding) involved companies Indirect investors through shareholding

Comments are closed.