By Obinna Uballa
The United States has slammed the decision by Norway’s sovereign wealth fund, the largest in the world with assets worth about $2 trillion, to sell its stake in United States machinery giant Caterpillar, describing the move as troubling and based on “illegitimate claims.”
In recent weeks, Norges Bank Investment Management (NBIM), which manages the fund, announced it would divest from Caterpillar and five Israeli banks over concerns that the companies were linked to human rights violations in the Gaza conflict.
The ethics council of the fund had earlier advised the move, citing evidence that Caterpillar’s bulldozers were allegedly used by Israeli authorities in the “unlawful destruction of Palestinian property.”
A U.S. State Department spokesperson told reporters on Thursday that the Trump administration was “very troubled” by the decision and is engaging with the Norwegian government on the matter. “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,” the spokesperson said.
Norway’s Finance Minister Jens Stoltenberg, however, distanced the government from the fund’s portfolio choices.
NBIM defended its position last week, stating that it saw “unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict.” At the end of 2024, the fund held about 1.2% of Caterpillar’s New York-listed shares.
The move has sparked criticism from U.S. lawmakers, including Republican Senator Lindsey Graham, who branded the decision “shortsighted.”
Reuters reports that NBIM’s divestment from Caterpillar followed its broader plan to sell all investments in Israeli firms outside its benchmark equity index and terminate contracts with Israeli asset managers. The fund has already cut its holdings in Israeli stocks from 61 at the end of June to just six, according to its website.
