‘Illegitimate Claims’: United States Condemns Norwegian Decision to Divest From American Manufacturer Over Israel Ties

Latest Development

Norwegian Caterpillar Divestment Tied to Israel: The State Department has strongly criticized the decision of Norway’s sovereign wealth fund to divest from the U.S.-based construction equipment company Caterpillar over its commercial ties to Israel. “We are very troubled by the Norwegian sovereign wealth fund’s decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government,” a State Department spokesperson said. The fund — the world’s largest, valued at around $2 trillion — announced in late August that, based on recommendations from its ethics council, it had divested from Caterpillar and five Israeli banks, accusing Israel of using Caterpillar bulldozers “to commit extensive and systematic violations of international humanitarian law.”
Norwegian Election Outcome May Spur Divestment Moves: Norway’s ruling Labour Party is embroiled in a tight election race as Norwegians head to the polls on September 8. To remain in government, Labour will likely need to form a coalition with far-left parties who are pushing for the sovereign wealth fund’s divestment from Israel as a non-negotiable condition for joining, the Aftenposten news outlet reported. Since the October 7, 2023, Hamas massacre in Israel, the fund has divested from 23 Israeli companies and banks.
Antisemitism’s Resurgence in Norway: Israel’s Ministry of Diaspora Affairs and Combating Antisemitism published a report in December 2024 noting a stark rise in antisemitism since the October 7 atrocities. The report found that 69 percent of approximately 1,500 Jews living in Norway had personally experienced incidents related to their Jewish identity. Incidents cited in the report include fascist and antisemitic graffiti glorifying Hitler, vandalism of Jewish cemeteries, and a torch being thrown at a synagogue. In May, Norway’s trade union confederation, which is closely tied to the Labour Party, voted overwhelmingly to adopt a comprehensive boycott of Israel.

FDD Expert Response

“What Norway calls an ‘ethics committee’ at its sovereign wealth fund, I call an economic warfare committee. These are not true investment decisions being taken. They are weaponizing their asset management position for political and ideological purposes, first attacking American energy and defense, now attacking companies that work with one of our closest democratic allies.” — Richard Goldberg, Senior Advisor

“The zeal with which Norway’s politicians are aiding Hamas by pursuing divestment runs counter to the country’s national interests. By targeting American and European companies as well as Israeli ones, Norway is opening itself to punishing tariffs, visa revocations, and even targeted sanctions from the U.S. They can’t say they weren’t warned.” — Ben Cohen, Senior Analyst and Rapid Response Director

“The Norwegian sovereign wealth fund has slid further into the campaign to destroy Israel through boycotts, divestment, and sanctions. Though some like to frame this as a question of morals and ethics, it derives from an Arab League campaign to smother Israel in its infancy, long before this current war began and long before Israel took control of the West Bank. Norway is not only aiding this annihilationist effort, but it is also swiping at American companies along the way.” — David May, Research Manager and Senior Research Analyst