File photo: Norwegian Foreign Minister Espen Barth Eide speaks during a Security Council meeting at United Nations headquarters. AP
The Norwegian central bank, which manages the fund, said late on Sunday that it had divested its holdings in Israeli group Paz Retail and Energy.
Paz owns and operates filling stations in nine Jewish illegal settlements in the West Bank, thereby supplying them with fuel, according to the bank's Council on Ethics, an advisory body that provides investment guidance for the fund.
Several of the settlements have been built "far inside occupied Palestinian territory and are linked to Israel by dedicated access roads"" the Council said.
It said that by operating the infrastructure, Paz was "contributing to (the settlements') perpetuation", leading to an "unacceptable risk that the company contributes to serious violations of the rights of individuals in war or conflict".
It noted that the settlements were established in violation of international law, and "the Council therefore considers that Paz is contributing to the violation of international law".
At the end of December 2024, the Norwegian fund owned 0.49 per cent of the company's shares, then worth 72.8 million kroner ($7 million).
Norway's central bank announces its divestment decisions only after the sale of its holdings.
The fund, which invests the Norwegian state's oil and gas revenues, is the world's biggest single investor.
It has stakes in nearly 8,800 companies in 71 countries, representing 1.5 percent of the world's total market capitalisation.
Norway has been an ardent supporter of the Palestinian cause and a strong critic of the Israeli genocidal acts in Gaza.
In 2024, Norway, along with Ireland and Spain, recognized a Palestinian state in a historic move.
In April, it officially established diplomatic relations with the State of Palestine by accepting the credentials of a Palestinian ambassador.
Norway became the first European country to publicly announce that it would arrest Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant if they entered the Nordic country in compliance with the arrest warrants issued by the International Criminal Court (ICC) last November.
*This story was edited by Ahram Online.
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