The Norwegian government said Tuesday it will conduct a full review of its $1.9 trillion sovereign wealth fund’s investments to determine whether any Israeli companies linked to the war in Gaza or West Bank "occupation" should be excluded.
The announcement follows a report in the Norwegian daily Aftenposten revealing that the fund acquired a stake in Israeli jet engine maker Beit Shemesh Engines between 2023 and 2024. The company services the Israeli military, including its fighter jets.
Get the Ynetnews app on your smartphone: Google Play: https://bit.ly/4eJ37pE | Apple App Store: https://bit.ly/3ZL7iNv
Norwegian Prime Minister Jonas Gahr Støre told public broadcaster NRK the investment raised concerns. “We need clarification on this matter because what I’m reading causes me discomfort,” he said. The fund, managed by Norges Bank Investment Management (NBIM), increased its stake in Beit Shemesh from 1.3% in 2023 to 2.09% by the end of 2024, totaling $15.2 million in shares.
Finance Minister Jens Stoltenberg said the central bank will now examine all Israeli holdings in light of the security situation and the newspaper’s reporting. NBIM’s CEO, Nicolai Tangen, said the company wasn’t flagged by any exclusion list, including those from the UN or the fund’s ethics council. In June, Norway’s parliament rejected a proposal to force the fund to divest from all companies operating in the West Bank. At the end of 2024, the fund held shares in 65 Israeli companies worth $1.95 billion.
The fund has already sold off stakes in two Israeli firms. In May, it exited its position in Paz, citing the company’s fuel infrastructure tied to settlements. In December, it also divested from telecom firm Bezeq. The moves followed tighter ethics council rules on doing business with companies seen as supporting Israeli activity in occupied Palestinian territory.