The Trump administration has expressed deep concern over Norway’s sovereign wealth fund decision to divest from US construction giant Caterpillar, citing what it calls “illegitimate claims” against both the company and the Israeli government, Reuters reported Wednesday.
The $2 trillion fund - managed by Norway’s central bank and considered the largest of its kind globally - announced last week it had pulled investments from Caterpillar over ethical concerns.
The move was based on the fund’s ethics watchdog assessment that Caterpillar’s bulldozers were allegedly used by Israeli authorities in Gaza and Judea and Samaria to commit “extensive and systematic violations of international humanitarian law,” including the “widespread unlawful destruction of Palestinian property.”
The watchdog further claimed Caterpillar “has not implemented any measures to prevent such use.” The company has not responded to media inquiries regarding the divestment.
A US State Department spokesperson responded sharply, saying, according to Reuters, “We are very troubled by the Norwegian sovereign wealth fund's decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government. We are engaging directly with the Norwegian government on this matter.”
Senator Lindsey Graham, a close ally of President Donald Trump and a staunch supporter of Israel, has suggested retaliatory measures against Norway, including tariffs and visa restrictions.
The Norwegian fund had previously announced on August 18 that it would divest from six companies as part of an ongoing ethics review related to the Gaza war and developments in Judea and Samaria. At the time, the fund declined to name the companies until the stakes were sold. The Council on Ethics had initially been scrutinizing Israeli banks for underwriting Israeli settlers' housebuilding commitments in the region.
The August 18 announcement came just a week after the fund sold stakes in 11 other Israeli firms.
The divestment campaign is gaining momentum in Norway ahead of the September 8th elections, with some political parties openly advocating for a full-blown boycott of all Israeli companies.
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 has already blacklisted 11 companies for assisting Israel's "occupation," most recently Israeli petrol station chain Paz and Israeli telecommunications company Bezeq.