Norway's $2 trillion sovereign wealth fund said on Monday it is terminating all contracts with asset managers handling its Israeli investments and has divested parts of its portfolio in the country over the situation in Gaza and the West Bank.
The Norwegian government has instructed the fund to review its investments in Israeli companies following criticism that it is indirectly supporting attacks in Gaza. According to the Financial Times, Norway's finance minister explained that the decision stems from "the deteriorating humanitarian situation in the Gaza Strip and the West Bank."
Last month, the fund divested from Paz Retail and Energy, citing its operations in West Bank settlements. In December, it also divested from telecom firm Bezeq.
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Last August, the fund adopted a tougher interpretation of ethics standards for businesses that aid Israel's operations in the Palestinian territories.
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 Israeli jet engine maker Beit Shemesh from 1.3% in 2023 to 2.09% by the end of 2024, totaling $15.2 million in shares.