Norway Wealth Fund Divests from Israel's Bezeq Over Services to West Bank Settlements

December 5, 2024 | 07:45 am

TEMPO.CO, Jakarta - Norway's sovereign wealth fund, the world's largest, has sold all its shares in Israel's Bezeq as it provides telecoms services to Israeli settlements in the occupied West Bank.

The decision, announced late on Tuesday, comes after the fund's ethics watchdog, the Council on Ethics, adopted a new, tougher interpretation of ethics standards for businesses that aid Israel's operations in the occupied Palestinian territories.

The $1.8-trillion fund has been an international leader in the environmental, social and governance (ESG) investment field. It owns 1.5% of the world's listed shares across 8,700 companies, and its size gives it influence.

It is the latest decision by a European financial entity to cut back links to Israeli companies or those with ties to the country, as pressure mounts from foreign governments to end the war in Gaza.

Bezeq, Israel's largest telecoms group, declined to comment.

"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 sovereign wealth fund's watchdog said in its recommendation to divest.

"By doing so the company is itself contributing to the violation of international law."

The watchdog said it noted that the company had said it was providing telecoms services to Palestinian areas in the West Bank, but that did not outweigh the fact that it was also providing services to Israeli settlements.

The watchdog makes recommendations to the board of the Norwegian central bank, which has the final say on divestments.

The advice on Bezeq was the first recommendation to divest since the watchdog toughened its policy in August. More decisions are expected.

'POLITICAL DECISION'

The fund has now sold all its stock in the company.

Before that, it had cut its stake during the first half of 2024, owning 0.76% of the company's shares valued at $23.7 million at the end of June, down from a holding of 2.2% at the start of the year, fund data showed.

Sources close to the company said the divestment's impact was "negligible" as it amounted to 0.7% of the shares and that the decision was clearly a "political decision".

They said Bezeq was allowed to provide telecoms services to Jewish settlements in Area C under the 1994 Oslo Accords - which also called for the Palestinian Authority to set up their own telecoms network to Palestinian areas.

"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 in May recognised Palestine as a state, alongside Spain and Ireland.

Norway served as a facilitator in the 1992-1993 talks between Israel and the Palestinian Liberation Organization that led to the Oslo Accords in 1993. Area C, which comprises about 60% of the West Bank, is under full Israeli control and contains most Israeli settlements.

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