Norwegian Sovereign Fund Announces Sale of Its Stakes in 11 Israeli Companies

SadaNews - The Norwegian sovereign wealth fund, the largest in the world, announced today, Monday, the sale of its investments in 11 Israeli companies, following the disclosure of its investment in an Israeli company that manufactures aircraft engines amid the escalating war in Gaza. The head of the investment management at the Bank of Norway, which manages the fund, Nikolai Tangens, stated, "These actions have been taken in response to extraordinary circumstances. The situation in Gaza represents a serious humanitarian crisis." He added, "We are investing in companies that operate in a country experiencing war, and recently conditions have worsened in the West Bank and Gaza." This comes after Norwegian Finance Minister Jens Stoltenberg said last Friday that the two trillion dollar sovereign wealth fund would announce changes in how it handles its investments in Israel, while at the same time excluding any comprehensive exit due to the war in Gaza. The fund then mentioned that it would provide an update on its investments in Israel on Tuesday. The government last week ordered an urgent review of its sovereign fund's investments due to ethical concerns related to the war in Gaza and the Israeli occupation of the West Bank. Stoltenberg said at a press conference after holding the second meeting in three days with fund officials, "I see that there are several actions that can be taken over time, but what can be dealt with quickly should be done swiftly." The review came after local reports stated that the fund held a stake in the Israeli "Beit Shemesh" engine group, which provides services to the Israeli army, including the maintenance of fighter jets, sparking political controversy in Norway ahead of elections set for the eighth of next month. Records of the fund, which owns stakes in 8,700 companies worldwide, showed that it owned shares in 65 Israeli companies worth $1.95 billion by the end of 2024. The Norwegian fund sold its stakes in an Israeli energy company and a telecom group last year, and its ethics council is reviewing whether it will recommend divesting from its stakes in five Israeli banks. Pro-Palestinian activists say these steps are not sufficient and have called for the fund to completely withdraw from Israel. The Norwegian parliament rejected a proposal in June to divest from all companies involved in activities in the occupied Palestinian territories.