Norway's wealth fund divests from Israeli company Paz over gas stations in Judea and Samaria

The world’s largest wealth fund, Norway’s Government Pension Fund Global (GPFG), announced on Sunday that it has sold all its shares in the Israeli company Paz Retail and Energy. The official reason for the divestment is that Paz operates gas stations and other energy infrastructure in Israeli Jewish communities in Judea and Samaria, internationally known as the West Bank.

Paz, which is one of Israel’s largest gas station operators, currently manages nine stations in Judea and Samaria. 

Norway’s Council on Ethics explained that it does not want to be involved with “Israeli settlements,” which it claims violate international law. 

“By operating infrastructure for the supply of fuel to the Israeli settlements on the West Bank, Paz is contributing to their perpetuation. The settlements have been established in violation of international law, and their perpetuation constitutes an ongoing violation thereof,” the council stated on its website.

Israeli legal experts argue that Judea and Samaria are disputed rather than “occupied” territories. The Norwegian fund did not provide any information whether it plans to increase its divestments in the Jewish state. 

The Norwegian fund giant currently owns some 1.5 percent of listed shares in 9,000 businesses across the world. The fund officially follows guidelines set by the Norwegian parliament and views itself as a global leader in environment, social and governance areas. 

International calls for divestments in Israel have increased following the Hamas Oct. 7, 2023, massacre of 1,200 Israelis and kidnapping of 251 people from southern Israeli border communities.

In December, the Norwegian fund’s watchdog recommended that the wealth fund divests from the Israeli telecom company Bezeq. The Norwegian fund’s watchdog has reportedly examined some 64 Israeli businesses in diverse sectors such as travel, tourism, banking, energy supply and infrastructure.

Most leading Israeli companies are present in the Israeli communities in Judea and Samaria, which are in practice often suburbs of major Israeli cities such as Jerusalem and located close to Tel Aviv and other coastal cities. 

However, the calls to divest in Israel are not new. The Norwegian wealth fund reportedly considered divesting from Israeli companies already in December 2022. 

Norway has emerged as one of Israel’s harshest critics in Europe. The affluent Scandinavian country has a tradition of siding with what it deems as the “underdog” and Norwegian media frequently misrepresents Israel as an aggressive Goliath. 

In May 2024, Norway joined Spain and Ireland in officially recognizing a “Palestinian State.” The Norwegian Foreign Minister Espen Barth Eide announced at the time that “for more than 30 years, Norway has been one of the strongest advocates for a Palestinian state. Today, when Norway officially recognizes Palestine as a state, is a milestone in the relationship between Norway and Palestine.”

The Israeli government condemned Norway, Ireland, and Spain, accusing them of rewarding terrorism against Israelis by recognizing 'Palestine' just months after the Oct. 7 massacre and while Israeli hostages remain in captivity in Gaza.

Norway has also been a major donor nation to the UN agency UNRWA despite its strong affiliation with the terrorist organization Hamas. Last October, Norway condemned Israel’s decision to close UNRWA. 

The Norwegian Prime Minister Jonas Gahr Støre who ignored UNRWA’s documented connection to Hamas and the Oct. 7 massacre, argued that “the UN, international humanitarian organizations, and states continue to face systematic obstacles when working in Palestine and delivering humanitarian assistance to Palestinians under occupation.”