The National Treasury Management Agency (NTMA) is to divest from Ireland Strategic Investment Fund (ISIF) investments in six Israeli companies linked to activities in the Occupied Palestinian Territory.
The NTMA controls and manages ISIF on behalf of the State.
It will sell shareholdings totalling €2.95m in six companies - Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank; Mizrahi Tefahot Bank Ltd; First International Bank and Rami Levi CN Stores, one of Israel's leading supermarket chains.
The Minister for Finance said ISIF has determined that the risk profile of these investments is "no longer within its investment parameters" and that the commercial objectives of these investments can be achieved via other investments.
Michael McGrath said the decision will be implemented as soon as possible over the coming weeks.
"I am advised ISIF will keep under review the alignment of relevant investments within its investment parameters and commercial objectives," he said in a statement.
"While recognising the independence of ISIF in the management of the investment portfolio, I believe this is the correct investment decision in respect of the assets it manages on behalf of the State," he added.
Sinn Féin said the move was a 'welcome first step', but TD John Brady said it did not go 'anywhere near far enough'.
Deputy Brady called on the Government to immediately audit the NTMA's entire portfolio to ensure that all of Ireland’s shareholdings in businesses in Israeli settlements in occupied Palestinian land are divested from.
He accused the Government of continuing to obstruct the passage of Sinn Féin's Illegal Settlements Divestment Bill through the Houses of the Oireachtas. He called on the Coalition to enact the legislation.
The ISIF move was welcomed by Oxfam Ireland. The NGO expressed the hope that it would push other countries to do likewise.
In a recent submission to the Oireachtas, Oxfam called on the Government to pull state investment from Israeli settlements.
