Oslo: Norway's largest wealth management fund, Norges Bank Investment Management, has taken significant steps to divest from Israeli companies, with the removal of 17 firms from its portfolio. This move, announced on Tuesday, reflects the fund's response to what it describes as extraordinary circumstances in the region.
According to Anadolu Agency, the $2.2 trillion fund had already excluded 11 Israeli firms as of June 30. The latest divestment reduces the number of Israeli companies in the fund's portfolio to 44. The statement issued by the fund highlights that 11 of these removals are linked to a decision from the previous week, while the remaining six were part of routine investment decisions.
Nicolai Tangen, the CEO of Norges Bank Investment Management, emphasized the gravity of the situation in Gaza, referring to it as a serious humanitarian crisis. He explained that the fund's investments in companies operating in a war-torn country necessitated a strengthened due diligence process and a simplified management approach. The fund has been actively engaging with firms operating in conflict zones, having dialogued with over 60 companies since 2020, with 39 of these discussions focused on the West Bank and Gaza.
As of the end of June, the Israeli portfolio was valued at $2.24 billion, but the recent removal of 17 companies, worth $143.3 million, brings the current value down to $2.09 billion. The companies removed from the portfolio include Amos Luzon, Azorim, Bet Shemesh, and several others. The fund is also taking measures to sell investments in Israeli companies not included in the equity benchmark index and is terminating contracts with external managers in Israel.
Norwegian Prime Minister Jonas Gahr Store, addressing the situation at a televised debate, expressed support for the fund's decision but clarified that a complete withdrawal from Israel was not on the agenda. Despite calls from the Socialist Left Party leader Kirsti Bergsto for a total divestment, Store maintained that the current actions were politically motivated and sufficient under the circumstances.
The backdrop to these developments is a growing international outcry over Israel's military actions in Gaza. The conflict has resulted in significant casualties, with nearly 61,600 victims reported since October 2023. The International Criminal Court has issued arrest warrants for Israeli leaders for alleged war crimes, and Israel is facing a genocide case at the International Court of Justice.