The world’s largest sovereign wealth fund is to sell its stakes in nearly a dozen Israeli companies citing an “unacceptable risk of contribution to serious norm violations associated with business operations in the West Bank”.
Norway's $2 trillion (£1.5 trillion) fund has announced it will sell investments in 11 Israel-based firms and terminate all contracts with Israeli asset managers.
“We are invested in companies that operate in a country at war, and conditions in the West Bank and Gaza have recently worsened. In response, we will further strengthen our due diligence,” the fund’s CEO Nicolai Tangen said in a statement.
Last week Norwegian newspaper Aftenposten reported the fund had a stake in Bet Shemesh Engines Holdings, which makes parts for engines used in Israeli fighter jets. The fund reportedly increased its investment in the firm post-October 7 and continued to retain that investment.
Following the news report, Norway’s Prime Minister Jonas Gahr Store instructed finance minister Jens Stoltenberg to review its investment in Israeli companies.
Norges Bank Investment Management, the body that manages the fund, said in a statement that, based on recommendations from its council on ethics, “11 companies have been excluded from the fund due to unacceptable risk of contribution to serious norm violations associated with business operations in the West Bank.”
The fund’s investments in Israel “will now be limited to companies that are in the equity benchmark index [created by Norway’s finance ministry]”.
In June Norway’s parliament rejected a proposal for the fund to divest from all companies with activities in the West Bank and Gaza.
To get more news, click here to sign up for our free daily newsletter.