The Dutch pension fund, PGGM, with over $210 billion in assets, announced on Wednesday that it has divested from five Israeli banks, effective January 1, 2014.
The reason given, in a statement posted on its website, is "...their involvement in financing Israeli settlements in the occupied Palestinian territories. This was a concern, as the settlements in the Palestinian territories are considered illegal under international humanitarian law." Full Statement
The fund had been in discussions with the banks for several years, in an attempt at constructive engagement, to no avail. According to PGGM's statement, "the dialogue showed however that, given the day-to-day reality and domestic legal framework they operate in, the banks have limited to no possibilities to end their involvement in the financing of settlements in the occupied Palestinian territories. "
The "domestic legal framework" probably refers to a rather fascistic 2011 Israeli anti-boycott law which subjects anyone in Israel calling for boycott or "deliberately avoiding economic, cultural or academic ties with another person or another factor only because of his ties with the State of Israel, one of its institutions or an area under its control, in such a way that may cause economic, cultural or academic damage" can be subject to a lawsuit by anyone who considers himself or herself to have been damaged by such an action. link
What is refreshing about PGGM's statement is that it cites the relevant international humanitarian law that makes the case for divestment quite clear and matter-of-fact. It's something you rarely hear in US MSM stories about the Israel/Palestine conflict:
In 2004 the International Court of Justice concluded in an Advisory Opinion that the settlements in the Palestinian territories are in breach of Article 49 of the Fourth Geneva Convention relative to the Protection of Civilian Population in Time of War. This article prohibits an occupying power to transfer its own citizens to occupied territory. International bodies, including the UN General Assembly and the UN Human Rights Council have adopted various broadly supported resolutions, which state that the settlements are considered illegal. Israel disputes this interpretation of the applicability of international law.
This case also shows how intertwined the occupation is with Israel-proper--as Israeli banks are providing the financing for building in the illegal settlements.
Several pension funds in Scandinavia and the Netherlands have already divested from the Israeli defense contractor, Elbit Systems, because of its activities in the occupied Palestinian territories.
And in December, both the American Studies Association and the Native American and Indigenous Studies Association endorsed a boycott of Israeli universities, because of what Omar Barghouti has described as "their complicity, to varying degrees, in planning, implementing, justifying or whitewashing aspects of Israel’s occupation, racial discrimination and denial of refugee rights."
In response to the decision by PGGM, the Israeli foreign ministry summoned the Dutch ambassador and told him, "We expect the government of the Netherlands... to take an unequivocal stance against such steps, which only wreak damage to the relations between Israel and the Netherlands." Because that's what free nations do. For sure.
However, apparently the Dutch ambassador had been clear that PGGM had made "an autonomous decision in which the Dutch government has no involvement."
Peaceful progress!
UPDATE: Here's a list of the companies PGGM excludes, with the reason for exclusion. Walmart is on the list.
Here's PGGM's FAQs about the current action.