Financial Giants Rethink Ties Amid Gaza Conflict

Several major European financial firms have cut or reconsidered their business ties with Israeli companies amid the ongoing conflict in Gaza. Pressures from activists, governments, and increased scrutiny over their wartime exposure are influencing these decisions, leading to divestments and revised risk assessments.

Several major European financial firms are reevaluating their associations with Israeli companies as tensions escalate in Gaza. A Reuters analysis reveals moves spurred by mounting pressure from international activists and governments to disengage from the conflict.

UniCredit, among others, has placed Israel on a prohibited list, aligning with its defense-sector policy not to finance any nation in conflict. This decision surpasses Italy's export guidelines. The Israeli finance ministry declined to comment, while UniCredit refrained from discussing the matter.

Norwegian asset manager Storebrand and French insurer AXA have begun divesting from Israeli firms, demonstrating a shift in how companies disclose their wartime exposure. This trend reflects a potential industry-wide transformation, suggesting a deeper awareness of the power banks wield in allocating or withholding capital.

(With inputs from agencies.)