British Foreign Secretary Ed Miliband warned Monday that companies and individuals participating in construction projects in the E1 area between Jerusalem and Ma'aleh Adumim could face British sanctions, as tensions between Israel and the United Kingdom continue to escalate.
The warning was issued on the final day for submitting bids for construction tenders in the area. Miliband urged prospective bidders “not to proceed" with their applications.
In his statement, the Foreign Secretary described the Israeli government's decision to advance construction in E1 as “a direct threat to the prospect of a two-state solution."
He also warned that Britain had established new legal mechanisms enabling it to impose sanctions on those participating in such projects.
“I want to be very clear with those considering engaging in the tendering process: we have created new powers allowing us to sanction individuals and companies involved in the construction of illegal settlements such as E1," said Miliband.
“We urge businesses and individuals not to proceed with bids for E1 construction tenders. They should be aware of legal and reputational consequences, including the risk of involving themselves in serious breaches of international law."
The latest warning follows a series of diplomatic confrontations between Jerusalem and London over Israeli construction plans in E1.
The dispute intensified after Israel published tenders for seven residential compounds containing 1,234 housing units. Those projects form part of a broader development plan comprising approximately 3,400 housing units, which received approval last August.
Miliband condemned the publication of the tenders and called on Israel to cancel them.
The British government subsequently announced a ban on trade in goods manufactured in Israeli communities in Judea and Samaria, citing the E1 construction plans.
Israel responded with a series of diplomatic measures announced by Foreign Minister Gideon Sa'ar.
Among the steps announced was the closure of the British Consulate in Jerusalem and the removal of British representatives from the International Gaza Support Center in Kiryat Gat.
Israel also said it would terminate British training programs for Palestinian Authority security forces in Judea and Samaria conducted through the “British Support Team in Ramallah."
In addition, the Israeli government announced that 12 British elected officials and other British nationals would be barred from entering Israel over allegations of antisemitic or anti-Israel activity or denial of Israel's right to exist.