The Irish government has pulled millions of euros of investment from several Israeli companies.

The Irish National Treasury Management Agency (NTMA) confirmed that it had made the decision to divest almost three million euros from its global equity portfolio in the Ireland Strategic Investment Fund (ISIF).

The divestment decision relates to shareholdings with a total value of 2.95 million euros in the following 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.

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

Irish finance minister Michael McGrath said it was the “correct decision”.

He 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.

“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.

“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.”

The ISIF is managed by the NTMA on behalf of the State and is comprised of discretionary and directed portfolios.

The discretionary portfolio has a “double bottom line” mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland.

The main objective of the global investments within the discretionary portfolio is to provide liquidity for Irish portfolio investments as well as other directed or expected withdrawals and to earn an appropriate risk adjusted return that will assist the ISIF’s performance with a low-risk appetite.

The total value of the ISIF’s portfolio at the end of 2022 was 15 billion euros of which 5.2 billion euros was invested in the global portfolio.

Irish Labour Party leader Ivana Bacik welcomed the decision.

Ms Bacik said: “The relentless violence and suffering endured by the people of Gaza demands urgent international attention. It is heartening to see the NTMA taking steps to divest from investments in companies operating in the occupied territories, but this is just the beginning.”

She added: “The scale of destruction witnessed by the people of Gaza is nothing short of horrific. The case for an immediate ceasefire in Gaza becomes even more compelling each day, as the death toll mounts. We are bearing witness to awful devastation, unleashed by the Israeli government upon this civilian population trapped in a small, besieged enclave.

“Irish people are clear in their condemnation of the destruction of human life in Gaza. It is imperative that the Irish Government amplifies this voice on the international stage and works tirelessly to secure a ceasefire. While we commend the Government’s contribution to humanitarian efforts and ongoing support for UNRWA, more must be done to alleviate the suffering of the Palestinian people.

“When faced with such brutal violence on such a scale, silence is not an option. Labour stands in solidarity with the people of Gaza and calls for an immediate cessation of hostilities. We welcome any efforts by Government to recognise the state of Palestine and urge them to prioritise diplomatic solutions to end the conflict.”