Norway’s $2 Trillion Wealth Fund Cuts Ties with Caterpillar Over Gaza Concerns
Oslo – Norway’s $2 trillion sovereign wealth fund, the world’s largest, announced last week that it has divested from U.S. construction giant Caterpillar on ethical grounds. The decision comes amid concerns that the company’s equipment is being used by Israeli authorities in Gaza and the Israeli-occupied West Bank.
The fund’s ethics watchdog said Caterpillar’s bulldozers and other products were being employed “to commit extensive and systematic violations of international humanitarian law,” including the “widespread unlawful destruction of Palestinian property.” Officials added that the company had “not implemented any measures to prevent such use.”
Caterpillar has not responded to requests for comment.
The move drew immediate criticism from the U.S. government. “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 U.S. State Department spokesperson said. “We are engaging directly with the Norwegian government on this matter.”
The decision also drew attention from U.S. lawmakers. Republican Senator Lindsey Graham, a close ally of former President Donald Trump, suggested Washington could consider imposing tariffs or visa restrictions in response.
Protests against firms with ties to Israel have grown as the humanitarian crisis in Gaza worsens. Since October 7, 2023, Israel’s military assault has killed tens of thousands, displaced the entire population of Gaza, and sparked accusations of war crimes and genocide from international courts and human rights organizations. Images of starving Palestinians, including children, have drawn global outrage.
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