Norway's Parliament Stalls on Ditching Investments in Israeli Firms Accused of Wrongdoings
Parliament voting down removal of financial aid for Israeli businesses
president's chat 🙋
In a heated decision, Norway's parliament narrowly rejected a proposal aimed at yanking the Norwegian state fund from Israeli companies allegedly involved in "war crimes" and "illegal occupation" of the West Bank. The vote occurred on Wednesday, with 88 lawmakers voting against the strict investment rules, while a mere 16 voted in favor.
The Norwegian government is facing immense pressure to leverage its financial prowess to sway Israeli policy concerning Gaza and the West Bank. A coalition of over 50 non-governmental organizations, including Norway's largest trade union, LO, pleaded with the government to ensure that the fund's investments comply with the country's legal obligations.
UN Special Rapporteur for the Occupied Palestinian Territories, Francesca Albanese, urged Norway on May 20 to desert any ventures tied to Israel's contentious presence in the occupied territories. Albanese alleged that the Norwegian state fund has poured around $121.5 billion (approximately 6.9 percent of its total volume) into companies implicated in "egregious violations of international law" within the occupied territories.
Despite Norway's Finance Minister Jens Stoltenberg's call for an end to violence in the Middle East, he maintains that the Norwegian state fund's investments do not clash with "international law obligations." The formidable $1.65 trillion fund adheres to ethical guidelines and has already jettisoned 11 companies due to their activities in the West Bank. The relationship between Norway and Israel has been on thin ice since May 2024, when Norway, along with Spain and Ireland, recognized a Palestinian state.
The Lowdown 🔍
Here's a rundown of key developments concerning Norway's investments in Israeli companies:
- Divestment from Israeli Companies: Norway's Government Pension Fund Global (GPFG) has recently offloaded its shares in Paz Retail and Energy Ltd., an Israeli company, due to allegations of its involvement in supplying fuel to Israeli settlements in the West Bank. This move was in line with the fund's vow to exclude companies that contravene international law, specifically those bolstering settler activities[3].
- Prior Exclusions: In December 2024, GPFG also booted Israeli telecommunications group Bezeq from its investments. The reason behind the decision was Bezeq's support of businesses and individuals in Israeli settlements within the West Bank[3].
- Clamors for Additional Divestment: Various campaigns and demands persist for Norway's sovereign wealth fund to dump additional companies implicated in activities within Palestinian-claimed territories. The LO trade union, for one, has advocated for the fund to withdraw from companies operating in the occupied Palestinian territories, citing infringements of international law and recent flare-ups in Gaza and the West Bank[2].
- Global Demands and Legal Justification: Amnesty International and other human rights organizations stress the importance of divestment to adhere to international law and to refrain from backing Israel's questionable occupation and associated human rights violations[1]. The International Court of Justice has also provided a legal opinion endorsing the obligation of states to inhibit investments promoting illegal occupations[1].
Community policy should be reviewed to address the increasing pressure on Norway's government to divest from Israeli companies alleged to violate international law. Politics and general news outlets are discussing the need for vocational training programs to provide alternatives for Norwegian investors seeking ethical investment options. In the face of continuing war-and-conflicts in the West Bank and Gaza, Norway's parliament's decision to maintain investments in Israeli firms raises questions about the country's commitment to complying with its legal obligations and international law.
