President Bush has signed a bill that will allow U.S. state and local governments to divest from Sudan because of the violence in Darfur.
Under the new law, state and local governments can withdraw investments from companies involved in Sudanese oil, power production, mining and military equipment.
Activists say those sectors - especially oil production - provide much of the revenue the Sudanese government uses to fund its war against Darfur rebels.
In a statement Monday, Mr. Bush said he shares the deep concern of Congress over violence in Darfur carried out by the Sudanese government and rebel groups.
The Bush administration had earlier raised concerns about state and local governments adopting divestment policies that delve into foreign policy.
Today, Mr. Bush emphasized that foreign policy is exclusively the federal government's role. He said his administration will construe and enforce the new law in a manner that does not conflict with that authority.