French companies linked to the Israeli economy are under increasing pressure amid ongoing BDS campaigns and Palestine solidarity movements.
In recent weeks, some French companies have taken discreet steps to withdraw from business relations with Israel, particularly those linked to Israeli settlements and crimes committed in Gaza.
AXA Withdrawal: A Partial But Important Victory
According to a report published by Mediapart, the major French insurance company AXA recently made a “complete and rapid withdrawal” from three Israeli banks: Bank Hapoalim, Bank Leumi, and Israel Discount Bank.
These banks are included in the United Nations list of companies involved in supporting Israeli settlements in the occupied Palestinian territories.
Prior to this withdrawal, AXA owned 2.5 million shares in these banks, worth $20.4 million as of September 30, 2023.
Mediapart considered this withdrawal a major victory for the boycott movement, and Fiona Ben Shakron, the movement’s coordinator in Europe, said, “Israeli banks represent the backbone of Israeli colonialism. They not only finance construction in the settlements, but also participate in their planning and implementation.”
However, the movement remains cautious, as it continues to investigate the possibility of AXA’s continued involvement in other companies linked to the occupying state.
Carrefour.. A shy withdrawal
The French company Carrefour faces criticism for its links to the settlement economy. In 2022, the company signed a franchise agreement with Electra Consumer Products, an Israeli company involved in building and maintaining settlements, according to the same website.
With international pressure mounting, Israel is facing major economic turmoil. In recent months, 60% of foreign investors have abandoned Israel, and its credit rating has been downgraded more than once.
Although Carrefour had withdrawn its products from some stores in the settlements before the summer, it still avoided commenting, according to a report by Mediapart.
“Carrefour’s withdrawal from some stores in the settlements is just a cosmetic move,” Pierre Mottan, campaign manager for the French NGO platform, told Mediapart, stressing that the trade agreements are still in place and that the company continues to be involved despite its attempts to hide it.
BNP Paribas under fire
While some companies such as AXA and Carrefour try to keep a low profile, BNP Paribas, one of France’s largest banks, is facing sharp criticism for its role in financing Israel during its ongoing war against the Palestinians, Mediapart reports.
According to a report published in La Humanité, the French bank has secured financing for $2 billion of Israeli sovereign bonds, representing a quarter of the total amount issued by Israel.
The move has angered many human rights organizations and activists, who see the bank as contributing to the continuation of the war on Gaza.
In an open letter to the bank’s director, six French organizations called for an end to this funding, warning that it was contributing to a war that involved “the risk of genocide according to the International Court of Justice.”
Economic repercussions on Israel
With increasing international pressure, Israel is facing major economic turmoil. In recent months, 60% of foreign investors have abandoned Israel, and its credit rating has been downgraded more than once.
Although the Israeli government rarely announces the effects of boycott campaigns, the movement’s increased activity and pressure on international financial institutions is beginning to leave its mark on the Israeli economy.
“It may be difficult to measure the actual impact of these campaigns, but it is certain that the continued ties between financial institutions and the Israeli regime contribute to the survival of this oppressive regime,” Fiona Ben Shakroun concludes.
