On Monday 29th October the Society for Threatened Peoples held a press conference with Berne Declaration, Genocide Intervention Network, Darfur Relief and Documentation Centre in Zurich, to demand that UBS and other leading Swiss financial institutions reconsider their investments in problematic companies operating in Sudan. Central to this call for action is the intention of UBS to underwrite PetroChina’s IPO (initial public offering) on the Shanghai stock exchange on the 5th November.

The government of Sudan relies almost exclusively on oil revenues to fund its genocidal military campaign. A number of international companies are involved with the oil industry and have detrimental practices to differing degrees. PetroChina, Sinopec (China), Petronas (Malaysia) and the Indian Oil and Natural Gas Company (ONGC) are “highest offenders” (as designated by the Sudan Divestment Task Force).

A large number of Swiss financial institutions own investments in these highest offending companies totalling around 6 billion US dollars, about 7 billion Swiss Francs. The key Swiss financial institutions with investments in these companies, according to Bloomberg Financial Services as of mid-October 2007 include;

 UBS, 2.7 billion US dollars
 Credit Suisse, more than 2.8 billion US Dollars
 Geneva-based bank, Pictet&Cie Banquiers, 221 million US dollars
 Lombard Odier Darier Hentsch Ltd, 98 million US dollars.

UBS and Credit Suisse, rank amongst the largest international investors in these controversial companies. They have both signed the UN Global Compact and have committed themselves to the 10 principles in the areas of human rights, work, environment and anti-corruption. Keeping business dealings with the companies in question clearly contradicts the spirit of this agreement.

Despite international criticism UBS plans to underwrite PetroChina’s IPO on the Shanghai stock exchange on 5th November 2007. It is likely to be one of the greatest sales of shares in the region, with an estimated value of 5.9 billion US dollars.

The non-governmental organisations Society for Threatened Peoples, Berne Declaration, Genocide Intervention Network and Bank Track demand that these financial institutions reconsider their investments. The four organisations call on the Swiss banks to urge their business clients acting in Sudan to take consistent measures to prevent their direct or indirect contribution to genocide. If the oil companies in question do not react, the financial institutions should pull back. In this case, UBS must resign from underwriting PetroChina’s IPO.

Christoph Wiedmer, the manager of the Society of Threatened Peoples: “Economic players can no longer deny its responsibility in regions where human rights abuses of this dimension are taking place. Either the investors achieve a change of thinking in the concerned governments and oil companies, or they should cancel their business relations with the problematic companies.”