This is no longer just a crisis: Britain has opened an economic front against Israel that is underway
Britain has expanded its sanctions powers, allowing it to impose economic measures on entities involved in settlement construction, including Israeli construction companies, banks, and developers. The new regulations took effect at a sensitive time, days before the deadline for bids on a tender for the construction of 1,234 housing units in the E1 area. In London, pressure is increasing on financial institutions to distance themselves from the project, while in Israel, the construction is seen as part of the expansion of settlements.
Britain has opened an economic front against Israel with the entry into force of new sanctions regulations, expanding its powers to impose measures on entities involved in settlement construction. The regulations, based on the sanctions regime in the field of human rights and international humanitarian law, allow for asset freezes, financial restrictions, entry bans to Britain, and restrictions on serving as directors. The timing is sensitive: on October 19, the submission of bids for the tender to build 1,234 housing units in the E1 area is expected to close, as part of a broader plan for about 3,400 housing units. Britain opposes the plan, arguing it would harm the territorial contiguity necessary for the establishment of a Palestinian state. British MPs have approached banks and financial institutions, warning of the risks involved in financing the construction. The Britain Palestine Project organization warned that companies participating in the project could jeopardize their international business ties. The Peace Now movement responded sharply: "This is a real alarm. Settlements are an economic threat to the future of the state." The move is part of a broader plan presented by Foreign Secretary Ed Miliband, which also includes a future ban on imports of products from the settlements. However, no new sanctions have yet been announced against specific companies involved in construction in E1.