Norway's Wealth Fund Divests: Ethical Stand or Political Pressure?

Norway's sovereign wealth fund divested from Israel's Paz Retail and Energy due to its operations in the occupied West Bank, marking its second ethical disinvestment. This move aligns with heightened calls in Norway for the fund to withdraw from Israeli businesses amid the ongoing Gaza conflict.

In a significant move, Norway's sovereign wealth fund, renowned as the world's largest, has sold its shares in Israel's Paz Retail and Energy. The decision stems from the company's involvement in supplying fuel to Israeli settlements in the occupied West Bank, which the fund's ethics watchdog deems a violation of international law.

This divestment is part of a broader campaign within Norway advocating for the fund to disengage from businesses associated with Israeli operations in contentious regions. Paz follows Israeli telecoms firm Bezeq, which saw divestment by the fund in December.

The Norwegian government, influenced but not driven by domestic boycott calls, insists on engagement over divestment for influencing Israel. However, Norway's LO trade union recently backed a full boycott, and the government acknowledges the influence of public opinion in shaping dialogue and policy regarding Israeli settlements.

(With inputs from agencies.)