Sweden’s AP Pension fund exits Bharat Electronics Limited over Myanmar military sale reports

Sweden's AP Pension Fund recommends excluding Bharat Electronics Limited for selling weapons to Myanmar junta, oppressing protesters.

The Ethics Council of Sweden’s AP Pension Fund has recommended that Bharat Electronics Limited (BEL), a leading public sector aerospace and defence company should be ‘excluded’ as it has sold weapons systems to the Myanmar junta that will help it oppress protesters in the conflict-torn country. In its annual report on 2024, the Pension Fund’s Ethics Council pointed out that the Myanmar military purchased “radar systems, air defence stations, radio systems, and equipment for military ships” both before and after the military coup in February 2021.

“The company’s arms exports to the Myanmar military are believed to contribute to the latter’s ability to commit violence against the country’s civilian population, in violation of international humanitarian law. Despite repeated attempts to contact the company, it has not been willing to engage in a dialogue with the Ethics Council,” the Ethics Council said in the annual report.

Justice for Myanmar, an international advocacy group that champions democracy in Myanmar, has welcomed the move by the AP Pension Fund saying, “AP2’s July 2024 foreign equities disclosure showed that the fund held over 359 million Swedish kroner (US$33.8 million) in BEL, and has since divested.”

Justice for Myanmar further said that the public sector undertaking from India was aware that the weapons system that it sold to the Myanmar military junta would be used against unarmed civilians and reminded that under the international norms, BEL was expected to adhere to the U.N. Guiding Principles on Business and Human Rights.

“Justice For Myanmar also notes that BEL is expected to respect the standards of international humanitarian law when dealing with conflict-affected countries like Myanmar and that, where the company fails to do so, both individual personnel and the company itself expose themselves to the risk of criminal and civil liability,” Justice for Myanmar said in a statement.

Myanmar military took power in a coup on February 1, 2021, but the military failed to establish total control over the country which erupted in a protest. Ever since the military junta of Myanmar has been fighting a battle against both pro-democracy protesters as well as the Ethnic Armed Organisations (EAOs) that are contesting the centralisation of power by the military.