OSLO – Norway’s sovereign wealth fund, the Oljefondet, has announced it has sold all its shares in 11 Israeli companies. The move comes as a direct response to a public and political firestorm ignited by recent media revelations about the fund’s investments in companies linked to Israel’s military and the conflict in Gaza.
The controversy began last week when reports from Aftenposten and Frifagbevegelse highlighted the fund’s holdings in Bet Shemesh Engines Ltd., a company that maintains fighter jets for the Israeli military. The revelations sparked widespread outrage, with the Prime Minister expressing his “unease” and several political parties, including the Left, Red, and Green Parties, demanding a full divestment from Israel and stricter ethical oversight.
In a press conference, Finance Minister Jens Stoltenberg expressed his approval of the fund’s swift action. “This is an important decision,” he stated. “I am glad that the bank has followed the recommendation and acted quickly.” Stoltenberg, who has demanded a full review of the fund’s Israeli investments by August 20, emphasized that the fund’s ethical guidelines explicitly prohibit investments that contribute to a state’s violation of international law. “Therefore,” he asserted, “the Oil Fund should not have ownership stakes in companies that contribute to Israel’s warfare in Gaza.”
Oljefondet CEO Nicolai Tangen, who has received a vote of confidence from Stoltenberg despite the controversy, described the decision as a response to a “very special conflict situation.” Tangen stated the fund is “strengthening our due diligence” due to the “serious humanitarian crisis” in Gaza and the deteriorating conditions in the West Bank.
The 11 companies from which the fund has divested were not on the Ministry of Finance’s “approved” list for investment but were actively chosen by the fund itself. In a further measure to address the controversy, the Oljefondet announced it is terminating its agreements with the external Israeli asset managers who made these investment choices. Going forward, the fund will only invest in Israeli companies that are on the Ministry of Finance’s pre-approved list.
The decision represents a significant policy reversal and marks the first tangible action taken by the fund since the public outcry began. While the fund still holds investments in 50 other Israeli companies, Stoltenberg described the divestment as a “first important step,” hinting at further measures to come. This move is seen as an attempt to quell the political storm and reinforce the ethical principles guiding Norway’s vast sovereign wealth fund.
