White House lambasts $2 trillion Norwegian wealth fund's Caterpillar exit

The U.S. medication struck retired astatine Norway's $2 trillion wealthiness fund, saying it was "very troubled" by the caller exit from American steadfast Caterpillar.

In caller weeks, the Norwegian sovereign wealthiness money — the largest of its benignant successful the satellite — wound down its investments successful Israel and announced plans to sell its holding of American machinery shaper Caterpillar, amid concerns implicit links to the struggle successful the Gaza Strip.

"We are precise troubled by the Norwegian sovereign wealthiness fund's decision, which appears to beryllium based connected illegitimate claims against Caterpillar and the Israeli government," a U.S. State Department spokesperson said successful a Thursday email. "We are engaging straight with the Norwegian authorities connected this matter."

The State Department archetypal spoke to the Financial Times astir the fund's strategy connected Wednesday.

In an emailed connection connected Thursday, Norway's Finance Minister Jens Stoltenberg stressed that the authorities was not progressive successful deciding which companies were included successful the fund's portfolio.

More broadly, decisions astir the money were divided betwixt the country's ministry of finance, its cardinal slope and the fund's ain morals council, helium added.

"The authorities is not progressive successful assessing idiosyncratic companies," helium said. "The determination to exclude companies is an autarkic determination made by the Executive Board of Norges Bank, successful accordance with the established framework. It is not a governmental decision."

Stoltenberg added that helium had been portion of a Norwegian delegation progressive successful talks with Trump's economical advisor Kevin Hassett connected Tuesday.

"We discussed commercialized and tariffs, economical sanctions against Russia and enactment for Ukraine," helium said. "The pension money was not a taxable of discussion."

Last week, Norges Bank Investment Management (NBIM) — which manages the money connected behalf of the Norwegian colonisation — said it would exit its involvement successful U.S. machinery shaper Caterpillar and 5 Israeli banks, citing "unacceptable hazard that the companies lend to superior violations of the rights of individuals successful situations of warfare and conflict."

At the extremity of past year, the money held a 1.2% involvement successful New-York listed caterpillar.

However, the fund's morals assembly had recommended cashing retired of that holding, with NBIM saying astatine the clip that absorption believed Caterpillar's bulldozers were "being utilized by Israeli authorities successful the wide unlawful demolition of Palestinian property."

The State Department's comments this week are not the archetypal clip U.S. officials person deed retired astatine NBIM's concern decisions.

In a bid of posts connected the X societal media level past week, Republican Senator and Trump state Lindsey Graham labeled the Norwegian wealthiness fund's portfolio shuffle arsenic "shortsighted."

"To Norway's sovereign wealthiness fund… Your determination to punish Caterpillar, an American company, due to the fact that Israel uses their merchandise is beyond offensive," helium wrote.

"Maybe it's clip to enactment tariffs connected countries who garbage to bash concern with large American companies. Or possibly we shouldn't springiness visas to individuals who tally organizations that effort to punish American companies for geopolitical differences."

The Norwegian fund's divestment from Caterpillar and the Israeli banks came soon aft NBIM said it would merchantability each its investments successful Israeli companies that aren't successful its equity benchmark scale "as soon arsenic possible." NBIM besides announced its volition to terminate contracts with outer plus managers successful Israel.

NBIM's lawman CEO Trond Grande told CNBC aft the archetypal announcement that the fund's holdings of Israeli companies had travel nether accrued scrutiny implicit the summer, arsenic the conflict successful the West Bank intensified.

"Due to the struggle and owed to sentiment present successful Norway, I should accidental there's a batch of scrutiny astir specifically our holdings successful Israeli companies," helium said.

"What we're doing present is truly not down-weighing, I wouldn't enactment it similar that, but we are trying to simplify our portfolio successful Israeli equities, due to the fact that we person ethical guidelines."

Norway's sovereign wealthiness fund, which has a existent worth of 20 trillion Norwegian kroner ($1.98 trillion), was invested successful 61 Israeli equities astatine the extremity of June.

It present holds conscionable six Israeli stocks, according to its website.

— CNBC's Jenni Reid contributed to this article.