Norwegian Wealth Fund divests from Israeli businesses during Gaza conflict escalation
Norway's Norges Bank Investment Management Divests from Israeli Companies
In a significant move, Norway's Norges Bank Investment Management (NBIM) has sold its stakes in 11 Israeli companies, marking a response to the "extraordinary circumstances" in the Middle East. The divestment, amounting to $143 million, was carried out following a directive from Norway's Finance Ministry in response to the worsening humanitarian situation in Gaza and the deteriorating conditions in the West Bank.
The move comes amidst international condemnation of Israel's military offensive in Gaza, which has claimed nearly 61,500 lives since October 2023. The United Nations' humanitarian office has accused Israel of using starvation as "a weapon of war" amid aid blockades and widespread hunger in Gaza.
NBIM's CEO, Nicolai Tangen, has stated that the divestment from Israeli companies is a direct response to these extraordinary circumstances. The sales were carried out "as quickly as possible," and NBIM will end all relationships with Israel-based external portfolio managers, transferring those investments to internal management.
As a result, the value of NBIM's Israeli portfolio has fallen to $2.09 billion. The firms removed from NBIM's portfolio include Amos Luzon, Azorim, Bet Shemesh, Delek Automotive, El Israel Airlines, Energix, Etoro Group, Max Stock, Meshulam Levinstein, Perion Network, Priortech, Rami Levy Chain Stores, Reit, Retailors, Scope Metals, Sella Capital, and Turpaz Industries.
NBIM will limit future holdings to companies within the official benchmark index. This shift in investments will allow for stronger due diligence procedures in conflict-affected regions, streamlining the work of both NBIM and Norway's Council on Ethics. The number of companies requiring active monitoring will be reduced.
Regarding NBIM's investments in Turkey, the top 10 companies invested in before the Israeli divestment are not explicitly named in the search results. However, NBIM's Turkish investments were mentioned as part of the broader 2024 investment overview. As of June 30, NBIM had stakes in 61 Israeli companies, with 11 outside the ministry's designated equity benchmark index.
Separately, proceedings are underway at the International Court of Justice, where Israel is defending itself against allegations of genocide over its actions in Gaza. In November, the International Criminal Court issued arrest warrants for Israel's Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant, accusing them of war crimes and crimes against humanity in Gaza.
[1] Source 1 [4] Source 4 [5] Source 5
In light of Norway's divestment from Israeli companies, it might be interesting to explore NBIM's investments in other regions, such as Turkey. [1] (Source 1)
While NBIM has sold stakes in 11 Israeli companies, the details of their top 10 Turkish investments before the Israeli divestment have not been explicitly stated in the search results. [5] (Source 5)
Amidst international tensions and legal proceedings, the general news includes proceedings at the International Court of Justice involving Israel, where Israel is defending itself against allegations of genocide and war crimes. [4] (Source 4)
