July 14, 2020 / 12:48 AM / 25 days ago

Norway's KLP drops investment ban on Brazil's Petrobras as governance improves

FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes/File Photo

BRASILIA (Reuters) - Brazil’s Petrobras said on Monday it is again eligible to receive investments from Norway’s largest pension fund, KLP, which had blocked investments in the state-owned oil firm following revelations of a sprawling corruption scheme.

Petroleo Brasileiro SA (PETR4.SA), as Petrobras is formally known, said considerable improvement in its governance following the so-called Operation Car Wash corruption probe led KLP to declare Petrobras as eligible for investment.

KLP did not immediately respond to request for comment.

Operation Car Wash uncovered Brazil’s largest-ever corruption scheme in which hundreds of politicians and businesspeople were implicated in exchanging bribes for public contracts with Petrobras.

In a 2016 statement announcing its exclusion of Petrobras from its portfolios, KLP said it had 33.74 million NOK invested in Petrobras shortly before the decision was made.

Reporting by Jake Spring and Gabriel Araujo; Editing by Leslie Adler

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