Norway fund excludes Israeli, Russian firms for ethical violations

By Al Mayadeen English
Source: News Websites
Today 14:14

The Norwegian sovereign wealth fund has excluded both a Russian and an Israeli company, citing West Bank violations and the Ukraine war.

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A fan flies Norway's flag during the men's downhill at the 2018 Winter Olympics in Jeongseon, South Korea, Thursday, Feb. 15, 2018. (AP)

Norway's sovereign wealth fund, the largest in the world with assets totaling approximately $1.8 trillion, has excluded both an Israeli and a Russian company, citing ethical reasons.

The Norwegian central bank, which oversees the fund, announced late Tuesday that it had sold its shares in Israeli telecommunications company Bezeq, which is accused of providing services to illegal Israeli settlements in the occupied West Bank under international law.

The Council on Ethics, which advises the fund on investment decisions, acknowledged Bezeq's claim that it also offers telecom services to Palestinian areas in the West Bank.

However, the Council stated that this does not "outweigh the fact that the company, through its operations and provision of telecom services to Israeli settlements in the West Bank, is helping to support the maintenance and expansion of these settlements."

It further stated that the company, by providing services to Israeli settlements, is contributing to the violation of international law.

In September, the ethics council said it may recommend expanding the list of companies excluded from benefitting from the SWF due to their links with "Israel".

Back then, nine companies were excluded from the fund for illegal actions in the West Bank, ranging from the illegal construction of roads to the illegal leasing of buildings, in line with the Israeli regime's expansive settler-colonial project.

It is worth noting that NBIM owned stock in 77 Israeli companies, as of the end of June 2024, which are valued at about $1.5 billion and correspond to around 0.1% of its total investments.

The fund also sold its shares in Evraz, a Russian steel company listed on the London Stock Exchange, which supplies steel to the Russian defense industry, thus enabling Russia to continue its alleged "illegal war of aggression" on Ukraine, according to the Council.

After receiving no response to several inquiries, the Council recommended that the fund exclude Evraz from its portfolio.

As of June 30, the fund held a 0.76 percent stake in Bezeq, valued at nearly $23.7 million, and a 0.96 percent stake in Evraz, worth approximately $1.4 million at the time.