Norway divests from Israeli fuel firm Paz over West Bank involvement
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Norway's sovereign wealth fund has sold its shares in Israeli energy company Paz due to its operations in illegal settlements in the occupied West Bank.
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The Israeli settlement of Har Homa, seen from the West Bank city of Beit Lahm, Tuesday, December 17, 2024 (AP)
Norway's sovereign wealth fund, the largest in the world, has divested from "Israel’s" Paz Retail and Energy due to its operations in the occupied West Bank.
The decision, announced Sunday, marks the second such divestment since the fund’s Council on Ethics adopted stricter ethical guidelines in August 2023 for companies involved in "Israel's" activities in the occupied Palestinian territories.
Paz Fuel operations under scrutiny
The Council on Ethics cited Paz’s role in maintaining infrastructure that supplies fuel to Israeli settlements in the West Bank, considered illegal under international law. Paz, the largest operator of gas stations in "Israel", reportedly runs nine stations in the occupied territory.
“By operating infrastructure for the supply of fuel to the Israeli settlements on the West Bank, Paz is contributing to their perpetuation,” the council stated.
“The settlements have been established in violation of international law, and their perpetuation constitutes an ongoing violation thereof.”
Second divestment amid Gaza war
This move follows the fund’s earlier divestment from Bezeq, a major Israeli telecommunications firm, in December 2024. Both actions are part of a broader reassessment by the Norwegian sovereign wealth fund, which owns around 1.5% of listed shares in roughly 9,000 companies worldwide. It operates under guidelines set by Norway’s parliament and is regarded as a global leader in environmental, social, and governance (ESG) standards.
The divestments come amid heightened international scrutiny of "Israel's" conduct since launching its war on Gaza in October 2023. Several European financial institutions have similarly reassessed their ties to Israeli firms with operations in the occupied Palestinian territories.
UN top court deems Israeli occupation, settlements illegal
The United Nations’ top court ruled in 2024 that "Israel's" occupation and settlement activities in Palestinian territories violate international law and called for an immediate withdrawal. The ruling was dismissed by the Israeli government, which described it as “fundamentally wrong” and biased.
Council on Ethics reviews dozens of companies
The Council on Ethics, which makes recommendations to the board of Norway’s central bank, reviewed about 65 companies for potential ties to settlement activity in sectors including energy, infrastructure, tourism, and banking. While most were cleared, only Bezeq and Paz were flagged for divestment.
As of now, the fund has sold all of its shares in Paz. It remains unclear whether additional divestments will follow.
Read more: Norway top trade union backs full boycott, divestment from 'Israel'
