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Politics · Israel and Gaza

Miliband's Settlement Sanctions Face Delay as UK Awards Contracts to Linked Firms

The UK government has signed deals worth over £10.7 million with companies on the UN settlement list, a move occurring while the new sanctions regime awaits implementation.

By Harper Collins ·

Illustration for: Miliband's Settlement Sanctions Face Delay as UK Awards Contracts to Linked Firms
Illustration generated for this article, not a news photograph.

The British government has awarded public contracts totaling £10.7 million to firms linked to illegal settlements in the occupied West Bank. These deals were finalized after Foreign Secretary Ed Miliband announced comprehensive sanctions against the settlements on 8 September. The timing contradicts the minister's public pledge to apply the full force of UK sanctions to entities that finance or facilitate settlement activity.

Miliband stated in parliament that settlements are illegal and that those facilitating them would face sanctions. However, government sources indicate the measures have not yet come into force. Implementing the new regime could take up to nine months. During this interim period, the government continued to issue contracts to companies listed by the United Nations for their involvement in settlement-related activities.

Recent awards include two contracts worth approximately £87,900 to Motorola Solutions and its subsidiaries. These deals cover communications equipment for the police. The UN lists Motorola Solutions for engaging in settlement-related activities. Israel has reportedly utilized Motorola technology in security and surveillance infrastructure within the occupied West Bank.

Heidelberg Materials subsidiaries received 14 contracts worth £10.4 million for roadworks and resurfacing in England. The company's Israeli subsidiary, Hanson Israel, owns the Nahal Raba quarry in the West Bank. This quarry sits on land belonging to Palestinian villages. Additional contracts were awarded to Thomas & Adamson International Limited and Breas Medical, both of which have connections to the UN settlement list.

Senior UK government figures told Middle East Eye in October that they intend to implement comprehensive sanctions regardless of whether Benjamin Netanyahu remains Israel's prime minister. The planned measures target companies providing construction and real estate services for settlement expansion. Labour sources, however, accused some civil servants of causing blockages and attempting to weaken the proposed rules.

Within the Foreign Office, officials have debated whether the sanctions should target only Israeli companies or also British firms complicit in settlement activity. Some argue that companies operating mostly within Israel itself should be exempt from the restrictions. This position would limit the scope of the sanctions to businesses operating primarily in the settlements. Miliband is understood to be determined that the regime should not be watered down.

If fully implemented, the sanctions would require British banks, pension funds, and asset managers to divest from companies operating in settlements. Financial institutions would also stop providing mortgages, insurance, and other services that support settlement activity. The Cabinet Office did not respond to a request for comment regarding the recent contract awards.

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