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Norway debates wealth fund divestment from 'Israel'-linked firms

By Al Mayadeen English
Source: News websites
4 Jun 2025 16:03
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Norwegian lawmakers are expected to reject a proposal to fully divest the country's $1.9 trillion wealth fund from firms operating in the occupied Palestinian territories.

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Displaced Palestinians return to retrieve their belongings from their homes in the area where the Israeli army operated in the northern Gaza Strip, on Wednesday, June 4, 2025 (AP)

Norwegian lawmakers are expected to vote against a proposal to fully divest the country's $1.9 trillion sovereign wealth fund from companies operating in the Israeli-occupied Palestinian territories. The decision, scheduled for Wednesday afternoon, comes amid growing public and international calls to align the fund’s investments with Norway’s obligations under international law.

The vote follows a period of heightened pressure on the minority Labour government to sever the Norwegian sovereign wealth fund’s financial ties to firms linked to the occupied West Bank and the Gaza Strip. Despite these calls, the government has signaled it will maintain its current policy, which selectively targets companies for divestment rather than enforcing a blanket withdrawal.

“We have an established ethical regime for the fund,” said Finance Minister Jens Stoltenberg during a broader parliamentary debate on governance of the oil fund.

“We divest from the companies that contribute to Israel’s breach of international law, but we do not divest from all companies that are present on the ground,” Stoltenberg stressed.

Calls for ethical divestment gain momentum

Ingrid Fiskaa, a member of the opposition Socialist Left Party, criticized the government’s stance. “Without Norwegian oil fund money, it would be more difficult for Israeli authorities to demolish the homes of Palestinian families,” she stated during the session.

International voices have also urged stronger action. UN Special Rapporteur on Human Rights in the Palestinian Territories, Francesca Albanese, addressed a letter to Stoltenberg on May 20, warning that “Israeli corporations are structurally entangled in the machinery of the occupation both in the West Bank, including east Jerusalem, and the Gaza Strip, and the violence that sustains it.” She called on Norway to divest from all companies that are directly or indirectly supporting the Israeli occupation.

Albanese emphasized that several international firms benefiting from oil fund investments are “critical components of the infrastructure sustaining the economy of the occupation,” reinforcing the argument that continued investments contradict Norway’s ethical investment guidelines.

Government cites compliance with international law

In response to these appeals, Stoltenberg asserted that the fund operates within the boundaries of both domestic oversight and international law. “We are confident that the investments do not violate Norway’s obligations under international law,” he said, reiterating that the fund adheres to ethical investment guidelines approved by parliament and enforced by an independent ethics council.

The government has maintained that a blanket divestment from all companies in the occupied Palestinian territories would be both impractical and inconsistent with the fund’s current mandate.

Over the past year, the ethics council has recommended the exclusion of several Israeli firms, including the fuel retailer Paz and telecom operator Bezeq, due to their activities in the occupied territories. Additional companies are currently under review as part of the council’s ongoing oversight of firms potentially in breach of Norway’s ethical investment standards.

Despite these targeted actions, it remains unlikely that the parliament will support a broader withdrawal from all entities operating in the occupied territories. Analysts expect the majority to reject the full divestment proposal when the vote takes place at 3 pm local time (1300 GMT).