Norwegian Sovereign Wealth Fund's Decision to Withdraw from Israel Sparks Tensions with Washington

SadaNews - The decision of the Norwegian sovereign wealth fund, the largest in the world with assets exceeding two trillion dollars, has sparked widespread controversy in Europe and the United States after it announced its withdrawal from investments in 29 companies linked to Israel, including the American company "Caterpillar".

Bloomberg explained that this action came after a government review ordered by Finance Minister Jens Stoltenberg, who justified the decision "for humanitarian reasons," indicating that the use of "Caterpillar" bulldozers in demolishing Palestinian properties in Gaza and the West Bank was a decisive factor that led to adopting this controversial position.

The Equation of Neutrality

According to Bloomberg, the fund was established 35 years ago with the sole purpose of maximizing financial returns for the benefit of future Norwegian generations, away from politics, but the rapidly evolving global developments pushed this entity, which manages oil and gas money, to overturn the equation of neutrality.

Its investment in companies associated with the Israeli military has turned into a hot electoral issue in Norway, coinciding with the upcoming election scheduled for Monday, as the issue of investments has become a topic of public and political discussion that is as significant as living issues such as housing and rising food prices.

American Outrage

Oslo's decision has sparked angry reactions in Washington, with Republican Senator Lindsey Graham, a close ally of President Donald Trump, writing on X: "Your ridiculous decision will not go unanswered."

According to Bloomberg, Graham added that he is working to impose restrictions on the visas of fund workers, considering that "the behavior of the Norwegian sovereign wealth fund is disgraceful."

The newspaper also noted that Norway has not yet signed a trade agreement with the U.S., which has already imposed a 15% tariff on its products, which could open the door to greater trade escalation.

Financial and Diplomatic Implications

The Norwegian decision did not only involve the withdrawal of investments from "Caterpillar" but also included 29 other companies, raising questions about its impact on Norway's relations with global companies and U.S. markets.

In contrast, supporters of the decision within Norway see the withdrawal as reflecting a "moral commitment" that aligns with the humanitarian stances demanded by public opinion, especially following the martyrdom of more than 63 thousand victims in Gaza since October 2023, according to the Palestinian Ministry of Health.

A Foggy Scene Before Elections

Bloomberg's report concludes that Norway faces a complex equation. On one hand, it seeks to maintain the reputation of its fund as a neutral financial tool that promotes the welfare of future generations, while on the other hand, it faces increasing pressure from both internal and external sources to justify its politically-oriented investment decisions.

As Norwegian voters prepare to cast their votes, it is clear that the issue of the sovereign wealth fund has shifted from a purely financial matter to a sensitive political issue, threatening to ignite widespread diplomatic and economic disputes with Oslo's transatlantic allies.

Source: Bloomberg