Norway’s Finance Minister, Jens Stoltenberg, has called on Norges Bank to review the Government Pension Fund Global's (GPFG) Israeli investments, citing the "deteriorating situation" in Gaza and the West Bank.

In a formal letter to Norges Bank and the GPFG's Council on Ethics dated 5 August 2025, the Ministry of Finance instructed them to provide an assessment of the GPFG's Israeli investments, along with any proposed actions Norges Bank believes are necessary, no later than 20 August.

The letter explained: "...questions have been raised about individual investments in the fund, including the fund's investment in Bet Shemesh Engines Holdings. It is understandable that developments in the conflict are causing concern."

Stoltenberg then convened a meeting today (6 August) with Norges Bank and the Council on Ethics, in which he underscored the "seriousness and importance of the matter" and called for a follow-up regarding the fund’s investments "as soon as possible".

This marks a reversal from the Norwegian parliament’s decision in May 2025, when it voted against banning GPFG investments in the Occupied Palestinian Territories (OPT).

The GPFG’s Council on Ethics assesses companies according to guidelines set by the Ministry of Finance. Norges Bank Investment Management makes decisions based on the council’s recommendations as part of its mandate to manage the fund’s investments.

The government has faced pressure from the Norwegian Confederation of Trade Unions (LO), as well as Amnesty International and around 50 other organisations to divest from the OPT.

Although a complete ban on Israeli investments has not yet been implemented, the GPFG has divested from two Israeli companies since December 2024 - Israeli energy company, Paz Retail and Energy Ltd, and Bezeq, The Israeli Telecommunication Corp Ltd, both for "unacceptable risk" that the company contributes to serious violations of the rights of individuals in war or conflict.

The Council on Ethics also previously sent a letter to the Ministry of Finance in August 2024, outlining its engagement with companies linked to the West Bank and Gaza.

European Pensions has contacted NBIM for comment.

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