NORWAY Law and Practice Contributed by: Elisabeth Roscher, Tine Vigmostad, Geir Sviggum and Kristin Nordland Brattli, Wikborg Rein Advokatfirma AS
1. Market Overview 1.1 Market Comparison
have created the need for crisis management. This includes the conflict in the Middle East fol- lowing the 7 October 2023 attack on Israel, and the Houthi attacks in the Red Sea. There is also continuous crisis management preparedness with respect to China, in particular due to Chi- na’s co-operation with Russia and tension with respect to Taiwan. Continued Focus on Human Rights Risks in Supply Chains A focus on human rights risks continues to be seen, particularly in international supply chains following the Transparency Act of 2021, which poses both legal and reputational risks to Nor- wegian businesses. As part of the efforts stipu- lated under the Norwegian Transparency Act, operators are required to conduct comprehen- sive due diligence in their supply chains to iden- tify, assess and address human rights risks. Fol- lowing such measures, businesses have in fact discovered risks requiring mitigation – the news community as well as non-governmental organ- isations have asked questions of businesses, which, under the Norwegian Transparency Act, they are required to answer, addressing potential adverse impacts on human rights. Cyber-Related Incidents and Cybercrime The aforementioned increase in international tensions due to the geopolitical environment has led to a heightened focus on national secu- rity and geopolitical risks among Norwegian businesses, making the Security Act, export regulations and sanctions assessments key focus areas in M&A transactions, cross-border agreements and investments. Norwegian busi- nesses are also acknowledging the increasing risks of cyber-attacks and intelligence activities by foreign states and companies, as well as by organised criminal groups or private individuals. In recognition of these risks, both the govern-
For corporations involved in international busi- ness, in the past 12 months crisis management practices and trends have related to three main topics in particular: • sanctions and export controls in light of the new geopolitical risks; • human rights risks in the supply chain; and • cyber-related incidents and cybercrime. Sanctions and Export Controls in Light of the New Geopolitical Risks Since the invasion of Ukraine in 2022, there has been a massive escalation of sanctions which has impacted on businesses worldwide. This has also affected the business community in Norway, both those engaged in international business in general and particularly business- es operating in the northern parts of Norway, due to the geographical proximity to and trade with Russia. In this respect, the authors note that Norway has also implemented particular carve-outs from the EU sanctions in order to allow some continued trade with Russia within the fisheries and aquaculture sectors, including exemptions allowing for Russian fishing vessels to dock at certain Norwegian ports in northern Norway. Against this background, new risks have become relevant for more businesses than previously, in combination with new rules and regulations, making it important for operators to invest significant efforts in order to stay on top of developments. As a result, there have also been issues relating to compliance, which has led to internal investigations and authority investiga- tions into past trades. Furthermore, beyond the sanctions against Rus- sia, other important geopolitical developments
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