In a statement made Friday, Norway's Finance Minister Jens Stoltenberg confirmed that the country's $2 trillion sovereign wealth fund will make adjustments to its handling of Israeli investments, according to Reuters.
However, he ruled out any blanket withdrawal in response to the ongoing conflict in Gaza, reaffirming that a hasty divestment would not be pursued.
"The fund will announce a review of its Israeli investments on Tuesday," Stoltenberg noted, following an intensive round of meetings with fund officials over the past several days. This review comes in the wake of growing ethical concerns surrounding the ongoing war in Gaza and the Israeli presence in Judea and Samaria.
Stoltenberg clarified that while some measures may be implemented quickly, the broader plan will unfold over time. "What can be addressed swiftly, must be addressed swiftly," he remarked.
However, he assured the public that a sweeping divestment from Israeli companies was not on the table. "A wholesale divestment because they are Israeli companies would not be the right approach," Stoltenberg explained.
The review was prompted by reports indicating that the fund had invested in Bet Shemesh Engines Ltd., an Israeli jet engine company that provides maintenance services to Israel's armed forces, including its fighter jets. The matter has sparked political debate in Norway, ahead of national elections on September 8.
Stoltenberg further explained that the finance ministry was assessing the use of external portfolio managers for some of the fund’s holdings, including the Bet Shemesh stake, which was managed by an external manager. The fund employs three Israeli external fund managers for some of its Israeli investments.
As of the end of 2024, the Norwegian sovereign wealth fund held shares in 65 Israeli companies, totaling $1.95 billion. In recent years, the fund has already sold stakes in an Israeli energy company and a telecom group. Furthermore, the ethics watchdog is currently reviewing the fund’s investments in five Israeli banks.
Despite calls from some parliamentarians, Norway’s legislature voted in June against a proposal to divest from all companies operating in what it refers to as “occupied Palestinian territories.”
The fund, guided by ethical principles set by the Norwegian parliament, has already blacklisted 11 companies for assisting Israel's "occupation," most recently Israeli petrol station chain Paz and Israeli telecommunications company Bezeq.
Norway, together with Ireland and Spain announced last 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.
(Israel National News' North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)