Did Barclays disinvest from major Israeli arms supplier?

UK banking firm Barclays has denied it has disinvested in Israel's largest weapons company Elbit Systems, following claims on Thursday from a pro-Palestinian protest group that its activism had forced the financial giants to do so.

Palestine Action, known for its direct activism against firms profiting from or enabling Israel's war on Gaza, released a statement on Thursday stating that Barclays had sold 16,000 shares in Elbit.

The group, citing Barclay's filings with the US Securities and Exchange Commission (SEC), said that the bank currently holds zero shares in Elbit, down from 16,345 shares included in the previous report on 15 May 2024, constituting an alleged value of over $3.4 million.

"The most recent SEC filings and NASDAQ data record an immediate total sale of Barclays’ [Elbit] shares, abruptly sold just when Palestine Action’s campaign hit them hardest," a statement from Palestine Action said.

However, a Barclays spokesperson clarified to The New Arab that the bank never held direct shares in Elbit in the first place.

"Barclays trades in shares of listed companies in response to client instruction or demand and that may result in us holding shares. We are not making investments for Barclays and Barclays is not a ‘shareholder’ or ‘investor’ in Elbit Systems in that sense, and therefore cannot divest; it would be misleading to suggest otherwise," the statement read.

"We continue to provide a range of financial services to the defence sector, including US, UK and European defence companies," it added.

Barclays did not provide information as to whether the figures cited by Palestine Action regarding shares that its clients hold in Elbit were accurate, nor did it account for any drop in shares linked to activism by pro-Palestinian groups such as Palestine Action.

Barclays has previously been targeted for its perceived investments and the provision of financial services to arms companies supplying Israel with weapons and military technology.

Earlier this year, a joint investigation by the Palestine Solidarity Campaign (PSC), Campaign Against Arms Trade (CAAT) and War on Want found a significant increase in shareholdings in loans to nine companies known to be producing weapons used by Israel

In the year since Israel began its war on Gaza, Palestine Action has carried out over 50 demonstrations or other acts against Barclays across the UK, including direct action protests.

Previously, Palestine Action has also directly targeted Elbit Systems in protests, including "radical direct action tactics" of the weapon makers' UK sites, such as occupations.

At least 16 activists associated with Palestine Action are currently in prison for offences involving the action against Elbit and other acts of civil disobedience.