Ankara:Israeli banks are expressing concern over potential new international sanctions related to financing settlements in the occupied West Bank, with particular focus on measures proposed by Britain.
According to Anadolu Agency, the Israeli daily Haaretz reported that the Association of Banks in Israel has issued an assessment warning that anticipated British sanctions could impact Israeli financial institutions. These measures may target entities involved in settlement construction or financing, extending beyond those directly linked to violence by Israeli settlers.
The banks have not clarified whether they will provide guarantees to contractors participating in government tenders for the E1 settlement project, which aims to connect Maale Adumim to Jerusalem by confiscating Palestinian land, thereby separating occupied East Jerusalem from the occupied West Bank.
On September 8, twelve countries, including Britain, France, Spain, and Canada, announced plans to ban trade with Israeli settlements in the occupied Palestinian territories. Britain also plans to expand its sanctions framework to cover individuals and entities involved in settlement construction or financing, with legislation expected to take six to nine months to pass.
The Association of Banks in Israel has met with officials from Israel's Foreign Ministry, central bank, and Strategic Affairs Ministry to discuss the possible repercussions of the sanctions. The assessment warned that sanctions could affect financial institutions associated with settlement expansion, and international financial institutions may increase scrutiny of related transactions before the legislation is enacted.
The Bank of Israel has expressed concern over the threat of sanctions, noting that the range of potential scenarios and implications is extensive. Meanwhile, Israeli banks have not yet clarified their stance on financing or providing guarantees for construction companies involved in the E1 tenders.
Haaretz quoted a banking source suggesting patience until after Israel's parliamentary elections on October 27, as the situation may change. Israeli Attorney General Gali Baharav-Miara has postponed the deadline for E1 construction tender bids by one month, deferring procedures until after the elections.
Israeli authorities had planned to tender 2,167 settlement housing units on October 25, in addition to 1,234 units included in a separate tender in August, totaling 3,401. According to official Palestinian figures, approximately 750,000 Israeli settlers live in 194 settlements and 400 outposts across the occupied West Bank, including East Jerusalem.
The United Nations has consistently stated that Israeli settlements in the occupied Palestinian territories are illegal under international law and undermine the prospects for a two-state solution.