Norwegian authorities are considering halting Russian acquisition of Bergen Engines – E24

The case is being updated …

– In recent months, the government has thoroughly investigated this matter, and it cannot be ruled out that a sale of Bergen Engines AS to TMH Group could pose a risk to national security interests. Therefore, it is necessary to pause this process in order to provide a sufficient factual basis to assess the transfer, says Minister of Justice and Emergency Management Monica Mæland.

Bergen Engines engines are used both on Norwegian Coast Guard ships, on the Norwegian intelligence ship “Marjata”, and in the navy of various allies, including the United States.

On Tuesday, the Minister also asks give an account of the planned sale at the Storting.

– There has been a lot of attention in the political environment and in the media on this issue. Therefore, I ask the Storting to give an oral explanation of the problem with the use of financial instruments for activities that threaten security and how the Security Act can be used to counter this, says Mæland.

Minister of Justice and Minister of Defense Frank Bakke Jensen will meet the press in Vandrehallen at 9.30 am. Follow E24 to receive it via live stream from the Storting.

– Aware that foreign investment can be a threat.

The National Security Authority (NSM) is subordinate to the Ministry of Justice and Emergency Preparedness, which is also responsible for the Security Law.

Bergen Engines has not been subject to the Security Act and does not have a supplier declaration or security agreement with the Armed Forces.

But even though Bergen Engines is not currently subject to the Security Act, it does not preclude the use of various parts of the Security Act in this case, the ministry claims.

– In cases like this, there will always be some elements that cannot be discussed in the public space. The government is now working to map all the conditions surrounding the possible sale of Bergen Engines, says Mæland.

The Ministry of Defense, which until this week was the one that had commented on the case, has previously opened to use the so-called safety valve in the Security Law, art. 2-5, to stop the sale.

Work to integrate the new buyer with Bergen Engines began shortly after TMH International was announced as a buyer in February.

The Ministry of Justice and Emergency Preparedness now assumes that any knowledge transfer in relation to due diligence and related activity will stop until the Government has mapped all matters related to the “possible sale”.

– We want to have an open economy that makes it attractive for foreign players to invest in Norway. At the same time, we are aware that foreign investment can be a threat to national security interests. The security policy situation means that we must pay more attention to foreign investment in strategic sectors, says Mæland.

Russian owners

Bergen Engines produces engines that are used primarily for ships or for power generation on land.

Two of the biggest owners behind TMH Group, who want to buy the engine factory, are Russian oligarchs Iskander Makhmudov and Andrej Bokarev.

Concerns about the sale of Bergen Engines are, among other things, that a Russian-controlled company will be responsible for the maintenance of Norwegian military ships.

Ståle Ulriksen, a researcher at the Naval Academy, has pointed out that the risk of piracy may increase if Russian owners are behind maintenance.

Technology transfer to Russia is also feared. Russia’s largest warship manufacturer, United Shipbuilding Corporation, wants to collaborate with Bergen Engines buyer TMH on a new diesel engine program.

Bergen Engines will also supply engines for our three new Coast Guard vessels. The first engines are already assembled.