Norwegian Wealth Fund Divests Investment from Israeli Telco due to Settlements
On Wednesday, Norway’s $1.8 trillion wealth fund announced it will be divesting its investments from Israeli telecom operator, Bezeq, due to concern that the telco’s operations in Israeli illegal settlements in the West bank.
As the world’s sovereign wealth fund, Norway’s decision is yet another portrait of the growing influence of human rights in global financial investments. In the telco’s case, this is a case of financial-related decisions based on ethical issues in regard to the effects of illegal settlements of Bezeq.
The withdrawal shows the growing tendency of finance related decisions that are based on ethical issues in regard to the effects of illegal settlements of Bezeq. Norway is the largest sovereign wealth fund in the world, this action has massive consequences with an aspect to the growth importance of people’s rights in the financial world.
The solution to the Bezek Israeli illegal settlement is a fundamental change in how global institutions consider corporations linked with political controversies and influence the expectations regarding finance accountability. The withdrawal might help invite other nations and investors to reconsider their responsibilities concerning their obedience of international law through economic means.
Drawing on Ethical Standards to Prompt Withdrawal
Bezeq, one of the main telecom companies that form the backbone of Israel’s connectivity ecosystem, has long been faced with criticism for conducting operations in areas seen as Israeli settlements illegal under international law, according to the Fourth Geneva Convention, Article 49.
In utter neglect to the Geneva Conventions and the Hague Regulations, Bezeq is creating Israeli settlements in Palestine illegally.
Decision made after the Ethics Council stated that, “adopted a tougher interpretation of ethics standards for businesses that support Israel’s actions in occupied Palestinian territories,” reported by western media.
The council stressed on the actions of Bezeq’s illegal Israeli settlements in Palestine, stating they were causing offenses of international law. The fund of Norway had 0.76% of Bezeq, where its shares were $22.8 million – down from 2.2% this year and 2.2.% as of June, 2.2% of the same year.
Such results portray a firmer ethical basis in the case of Norway that were pushed by illegal Israeli settlement Bezeq. Norway has been assessing companies with links to Israeli illegal settlements in occupied Palestinian territories since October of this year.
Yet, Norway’s wider political picture also comes into scene. In May this year Norway formally recognized Palestine as a sovereign state, a move Israeli authorities responded by depriving of the permits of eight Norwegian diplomats in Israel.
Rippling Effect in Telecom Sectors
Norway’s withdrawal indicates a bigger economic change especially after Bezeq business ties to illegal Israeli settlements, with the decision coming amid international disapproval of Israel’s actions in its occupied territories after 76 years of displacement and wars in Palestine, and the last 30 years of war in Gaza and the West Bank.
Meanwhile, Israeli Finance Minister Bezalel Smotrich, also a settlement occupier, has continued his takeover spree, seeking the expansion of Israeli settlements illegal under international law in the West Bank, and vocalizing Israel’s need to occupy the Gaza Strip, at a time when concern about wider international outrage is definite.
As the inspection reaches the telecommunications sector, many are wondering if the other sectors are not too far behind, and that would have larger implications for the Israeli economy.
The ethical and financial implications of Norway’s action against Israeli illegal settlements could serve as a precedent, with wider economic consequences as international companies start reviewing links with Israeli businesses. Technology and telecoms’ role helping war torn countries may be a defining factor in international economic relations in today’s interconnected world.
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