Norway's sovereign wealth fund, the largest in the world, has divested all its shares in Israel's largest telecom company Bezeq, citing the company’s provision of telecom services to “Israeli settlements in the occupied West Bank”, Reuters reports.
The decision, announced late Tuesday, follows the adoption of stricter ethical guidelines by the fund's ethics watchdog, the Council on Ethics, regarding businesses that support Israel's activities in areas under the control of the Palestinian Authority (PA).
"The company, through its physical presence and provision of telecom services to Israeli settlements in the West Bank, is helping to facilitate the maintenance and expansion of these settlements, which are illegal under international law," the watchdog said in its recommendation to divest, as quoted by Reuters.
"By doing so the company is itself contributing to the violation of international law."
The $1.8 trillion fund, recognized globally as a leader in environmental, social, and governance (ESG) investing, owns 1.5% of the world's listed shares across 8,700 companies, giving it significant influence.
Bezeq declined to comment on the divestment.
The watchdog acknowledged that Bezeq provides telecom services to Palestinian Arab areas in Judea and Samaria, but also stated that this did not outweigh its contributions to “Israeli settlements”.
The fund's board, which is managed by the Norwegian central bank, makes the final decisions on divestments based on recommendations from the ethics council. The advice on Bezeq marks the first divestment recommendation since the council tightened its policies in August, with further decisions expected.
Sources close to Bezeq described the financial impact of the divestment as "negligible," noting that the sold shares represented only 0.7% of the company. They stated that the decision was politically motivated.
"Bezeq is operating according to the Oslo agreements, so it's a political decision," said one source. "Of all the companies to choose from (to divest), Bezeq should have been the last."
Norway, together with Ireland and Spain announced in May that they intended to recognize the “State of Palestine”.
The announcement came after Ireland, Spain, Slovenia and Malta announced that they would jointly work toward the recognition of a Palestinian state, arguing a two-state solution is essential for lasting peace in the region.
In February, Norway nominated the UN “Palestinian refugee agency” UNRWA for the Nobel Peace Prize, despite the fact that around 10% of UNRWA employees are affiliated with terror groups.
That same month, Norway announced additional funding for UNRWA.