World’s Largest Sovereign Wealth Fund Cuts Ties With Israeli Telecom Bezeq
Norway’s sovereign wealth fund, the largest in the world, has sold all its shares in Israeli telecom giant Bezeq due to the company’s operations in West Bank settlements, which the fund deems illegal under international law. The move follows a stricter ethics policy adopted by the fund’s ethics watchdog, the Council on Ethics, earlier this year.
“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,” the watchdog stated, recommending the divestment.
The $1.8 trillion fund, a leader in environmental, social, and governance (ESG) investment, owns stakes in over 8,700 companies worldwide. The decision marks its first divestment under the updated ethics guidelines introduced in August.
Bezeq, Israel’s largest telecom provider, declined to comment on the divestment. Sources close to the company described the decision as “political,” arguing that Bezeq operates under the 1994 Oslo Accords, which allow it to provide services to settlements in Area C.
The watchdog countered that the settlements’ continued expansion and the displacement of Palestinians contradict the agreements’ original intent. It also cited an International Court of Justice ruling that declared Israel’s settlement policy and its use of West Bank resources to be in violation of international law.
The fund had already reduced its stake in Bezeq earlier this year, with its holdings dropping to 0.76% by June, worth $23.7 million. Since the Gaza war began in October 2023, the ethics council has been reviewing other companies’ activities in the West Bank and has previously divested from nine firms operating in settlement construction, surveillance, and infrastructure.
