US 'very uncomfortable' with Norwegian fund withdrawal from Caterpillar due to Israel
Donald Trump's administration said it was "very uncomfortable" with the Norwegian oil fund selling its stake in construction equipment manufacturer Caterpillar for its activities in Israel and protested directly against the Oslo government.
The world's largest state fund last week revealed that it sold Caterpillar shares after its independent ethics adviser claimed that Caterpillar's bulldozers were used to “extentibly and systematically violate international humanitarian law” by destroying Palestinian property.
However, US statements intensify the diplomatic pressure on Norway and the $2 trillion government fund as Oslo prepares for next week's parliamentary elections.
“We are deeply concerned about the decision that the Norwegian state fund appears to be based on illegitimate allegations against Caterpillar and the Israeli government, the U.S. State Department said on Wednesday. We are discussing directly with the Norwegian government on this issue," he said.
Lindsey Graham, a Republican senator close to US President Donald Trump, threatened to impose tariffs on Norway and stop issuing visas to fund officials over the disposal of Caterpillar.
“I'm calling out to those who run Norway's government fund: If you can't do business with Israel because it uses Caterpillar products, maybe it's time to understand that doing business with America or visiting America is a privilege, not a right,” Graham said.
Caterpillar's disposal means that it is the first time Norway has sold a company outside Israel because of its oil fund's actions in Israel and the Palestinian territories. Some Norwegian officials are concerned that the US may target funding or the government using anti-boycott laws due to any criticism of Israel.
Oslo recognized Palestine as a state last year, and with intense pressure from the Norwegian people, it became one of Israel's biggest critics in Europe.
The oil fund held an important place in the campaign of parliamentary elections to be held on Monday. Some parties said the fund should be completely withdrawn from Israel and Nicolai Tangen should resign as the general director of the fund. Tangen resisted these calls, instead selling almost half of his shares in Israel and Caterpillar.
Norway tried to repel the pressure on the oil fund. After Graham described the fund's decision as “beyond aggression,” the country's Prime Minister Jonas Gahr Støre sent a message to the senator that the investor was independent of the government.
Graham said he appreciated the message to Bloomberg but the decision was "brash" and said he would ask the Trump administration to impose visa restrictions on funding officials.
Norway's Finance Minister and former NATO Secretary General Jens Stoltenberg said on Thursday that the Norwegian government was "not involved in the assessment of individual companies," but was instead done by the central bank that manages the oil fund. “This is not a political decision,” he added.