Norway has proclaimed itself a “moral role model” in Europe, becoming one of the first countries to recognize the state of Palestine in 2024. But now, the oil fund scandal is challenging its image as a champion of human rights. According to polls, a majority of citizens demand the complete withdrawal of funds from Israel. With general elections on September 8, the Gaza issue is becoming a political turning point: the center-left government defends continued investment in Israel, while the right-wing opposition calls for increased trade with Israel, ignoring accusations of genocide.
By Sindre BANGSTAD
Norway has become one of the richest countries in the world thanks to oil. Its sovereign wealth fund, known as the Government Pension Fund (GPFG), established in 1990 with oil revenues and now run by wealthy banker and art collector Nicolai Tangen, is worth around £1.4 trillion. It is the world’s largest investor, with holdings in around 8,500 companies in 69 countries. Officially, Norway advocates a foreign policy based on human rights, and the oil fund must adhere to ethical guidelines, avoiding investments in companies that violate international law or contribute to war crimes. But after October 7, 2023, when Hamas attacks took place and Israel began a massive bombardment of Gaza, the GPFG has increased its investments in Israeli companies by 66%, managing them through three investment companies in Israel, one of which has direct ties to Israeli government ministers.
The UN Special Rapporteur on Palestine, Francesca Albanese, warned that Norway was becoming one of the main European sources of funding for the Israeli occupation.
In April 2024, it highlighted the risk of complicity in violations of international law. Finance Minister Jens Stoltenberg, a former NATO Secretary General, dismissed this criticism, but pressure from Norwegian NGOs increased. In June, the Historians for Palestine organization published a 118-page report documenting Norwegian investments in Israeli companies linked to the massacres in Gaza. Among them were Bet Shemesh Engines, which supplies parts for the Israeli Air Force’s F-15, F-16 fighter jets and Apache helicopters, and Next Vision Stabilized Systems, a manufacturer of cameras for drones bombing Gaza. At the height of reports of over 20 Palestinians killed and accusations of genocide, the fund increased its stakes in these companies, benefiting from rising share prices.
DOUBLE STANDARDS
The left-wing opposition in Norway has been calling for a complete withdrawal of funds from Israel for years. But the parliamentary majority in June rejected this demand, arguing that there should be no “political interference” in investment decisions. However, just four days after the Russian invasion of Ukraine in 2022, the Norwegian government ordered the fund to withdraw all investments from Russia. So when it comes to Moscow, politics is at the top. But for Israel, financial interest seems more important.
FROM MEDIA SCANDAL TO PUBLIC PRESSURE
It was only this July, when the conservative newspaper Aftenposten published data on Norwegian investments in Bet Shemesh, that the matter became a full-blown political scandal. Under pressure, Prime Minister Jonas Gahr Støre announced that GPFG would withdraw from 17 Israeli companies, including Bet Shemesh Engines, and that the funds would no longer be managed by investment firms in Israel. But he ruled out a complete withdrawal. However, the reports continue: it was recently revealed that the fund also owns shares in two Israeli banks that finance the arms company Elbit Systems, a company from which Norway withdrew in 2009 due to violations of international law.
A MORAL AND POLITICAL CRISIS BEFORE THE ELECTIONS
Norway has proclaimed itself a “moral role model” in Europe, being among the first to recognize the state of Palestine in 2024. But now, the oil fund scandal is challenging its image as a champion of human rights. According to polls, a majority of citizens demand the complete withdrawal of funds from Israel. With general elections on September 8, the issue of Gaza is becoming a political turning point:
The center-left government defends continued investment in Israel.
The right-wing opposition demands increased trade with Israel, ignoring accusations of genocide.
The radical left insists on a complete withdrawal of funds.
If foreign policy becomes the main issue of the vote, the Labour Party risks severe punishment. But the big question remains: will Norway allow its national wealth to be built on the blood of Gaza? (The Guardian)