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Norway fund’s ethics body reviews Israeli bank stakes over West Bank settler loans

Norway fund’s ethics body reviews Israeli bank stakes over West Bank settler loans
Palestinian children from the village of al-Mazraa al-Qabaliya look a bungalows in the distance built by Israeli settlers at an outpost constructed on seized land from the Palestinian village, near the West Bank city of Birzeit on December 3, 2013. (File/AFP)
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Updated 03 June 2025

Norway fund’s ethics body reviews Israeli bank stakes over West Bank settler loans

Norway fund’s ethics body reviews Israeli bank stakes over West Bank settler loans
  • Around 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem

OSLO/LONDON/JERUSALEM: The ethics watchdog for Norway’s $1.9 trillion wealth fund is scrutinizing Israeli banks’ practice of underwriting Israeli settlers’ housebuilding commitments in the occupied West Bank in a review that could prompt up to $500 million in divestments.

The Council on Ethics, a public body set up by the Ministry of Finance, has, however, decided not to object to the Fund’s investments in accommodation platforms such as Airbnb that offer rentals in the Jewish settlements.

The body checks that firms in the portfolio of the world’s largest wealth fund meet ethical guidelines set by Norway’s parliament.

In an interview with Reuters on May 22, Council head Svein Richard Brandtzaeg said it was examining how Israeli banks offer guarantees that protect Israeli settlers’ money if the company building their home in the West Bank should fold.

Other practices are also being looked at “but this is what we can see so far,” he said. “That is what is well documented.” He declined to say how long the review would take.

Brandtzaeg did not name the banks but, at the end of 2024, the fund owned about 5 billion crowns ($500 million) in shares in the five largest Israeli lenders, up 62 percent in 12 months, according to the latest data.

The banks — Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi Tefahot Bank and First International Bank of Israel — did not answer requests for comment.

Since 2020, they have been included in a list of companies with ties to settlements in the occupied Palestinian territories compiled by a UN mission assessing the implications for Palestinian rights.

Latterly, investor concern has grown around the world over a 19-month-old Israeli onslaught that has killed more than 50,000 Palestinians and devastated the Gaza Strip in response to an attack by Hamas militants that killed more than 1,200 Israelis.

Around 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem.
Many settlements are adjacent to Palestinian areas and some Israeli firms serve both Israelis and Palestinians.
The United Nations’ top court last year found that Israeli settlements built on territory seized in 1967 were illegal, a ruling that Israel called “fundamentally wrong,” citing historical and biblical ties to the land.

ACCOMMODATION RENTALS IN WEST BANK SETTLEMENTS

In mid-2024, the Council on Ethics began a new review of investments linked to the West Bank and Gaza.

It examined 65 companies but recommended only petrol station chain Paz and telecoms company Bezeq for divestment, resulting in share sales.

The Council also scrutinized some multinationals to see if their activities in the West Bank met its guidelines.

Among them were the accommodation platforms, including Airbnb, Booking.com, TripAdviser and Expedia, named on the UN list and accounting for about $3 billion in Fund investments.

But the Council will not recommend watchlisting or divesting from those, Eli Ane Lund, head of its secretariat, said in the joint interview.

“The company’s activity must have some kind of influence on the (ethical) violations,” she said. “It’s not (enough) to have a connection, it has to have something to do with the violation, it must contribute to it.”

The Council’s recommendations go to the central bank, which is not obliged to follow them but generally does.

If investments are sold, it is done gradually to avoid alerting markets, and the decision is then made public.

Pro-Palestinian campaigners say the Council sets its bar too high for recommending divestments, and that the Norwegian government should instruct the fund to conduct a general divestment from Israel just as it did for Russia in 2022, three days after Moscow invaded Ukraine.

But most lawmakers support the Council’s approach, and are set on Wednesday to formally endorse a parliamentary finance committee’s decision not to order a wholesale boycott.


What lies ahead in Iraq: the hard task of forming a government

What lies ahead in Iraq: the hard task of forming a government
Updated 58 min 42 sec ago

What lies ahead in Iraq: the hard task of forming a government

What lies ahead in Iraq: the hard task of forming a government
  • With no single bloc dominating the next parliament, key parties could spend weeks or even months negotiating alliances to build the largest bloc and nominate the next premier

BAGHDAD: Following Iraq’s parliamentary election this week, the complex and often lengthy task of choosing the country’s next leader is set to begin.
Incumbent Prime Minister Mohammed Shia Al-Sudani claimed victory for his coalition after preliminary results showed it was the largest bloc — though it still falls short of the majority needed to form a government.
Sudani now faces the tough quest of securing support from other parties, mostly from the Shiite majority, in his bid for a second term.
With no single bloc dominating the next parliament, key parties could spend weeks or even months negotiating alliances to build the largest bloc and nominate the next premier.
Sudani was brought to power in 2022 by the Coordination Framework, an alliance of Shiite factions with varying links to Iran.
While preliminary vote counts for each list by province were released, seat allocations in parliament will not be announced until later.
By convention in Iraq, a Shiite Muslim holds the post of prime minister and a Sunni that of parliament speaker, while the largely ceremonial presidency goes to a Kurd.

- How is the government formed? -

Naming a premier and forming a government has often proven to be an arduous task involving protracted political wrangling.
In previous parliaments, Shiite majority parties have struck compromises to work together and form a government, and the main contenders often find themselves sidelined.
Seats are used as bargaining chips, and newly-elected lawmakers can switch sides.
With an outright majority almost impossible to achieve by any single list — as was the case in this week’s vote — the next premier will be selected by whichever coalition can gather enough allies to become the biggest bloc.
Since voting began two years after the 2003 US-led invasion that toppled Saddam Hussein, only one premier, Nuri Al-Maliki, has served for two terms (2006-2014).

- What are the possible outcomes? -

Currently, no serious candidates have emerged except for Sudani — though he himself was a relative unknown prior to his nomination.
A senior politician told AFP last month that the Coordination Framework is divided over supporting Sudani, with Al-Maliki seemingly poised to oppose a second term for the incumbent.
Long-term powerbrokers, including from the Coordination Framework, worry that Sudani has amassed too much power during his first term, making some reluctant to allow him to keep his seat.
Sudani has also faced allegations that members of his office were responsible for wiretapping the phones of politicians.
A source within a main party in the Coordination Framework told AFP that the alliance had previously agreed to reunite and create the largest bloc.
“They will name the next premier and participate in choosing the parliament speaker, his deputies and the president,” the source said.

- What happened after previous votes? -

In the 2010 election, former premier Iyad Allawi’s bloc won most seats, 91, closely followed by Maliki’s alliance, which won 89.
After months of bickering, political leaders stuck a deal and Al-Maliki was reappointed for another term despite coming second in the ballot.
In 2021, influential Shiite cleric Moqtada Sadr’s bloc emerged as the biggest winner, with 73 seats, but still fell far short of a majority.
His bloc withdrew from parliament following a dispute with other Shiite parties that culminated in deadly fighting in Baghdad.
In the aftermath, influential parties instead came together under the Coordination Framework to form a larger bloc, and brought Sudani to power.

- What role do Tehran and Washington play? -

For decades, Iraq has been a proxy battleground between the US and Iran, and forming a government has always been influenced by the two foes.
The next premier will have to maintain the delicate balance between their interests.
Since the US-led invasion, Iran has not only wielded significant influence in Iraqi politics, but also backs armed groups in the country, whose power has grown both politically and financially.
As Iran’s regional influence wanes, it aims to preserve its power in Iraq and keep the market open to products from its crippled economy.
Washington meanwhile wants to cripple Tehran’s influence, pressuring Baghdad to disarm Iran-backed factions, many of which have been designated as terrorist groups.
Some of those groups will nonetheless have seats in the parliament and maybe the government.
Last week, Foreign Minister Fuad Hussein told the Saudi-funded Al-Hadath channel that six pro-Iran factions are on a US blacklist — a key factor the government must consider.