Israel attorney-general delays E1 settlement tender

Israel's attorney-general has ordered the government postpone the tender for the E1 settlement in the occupied West Bank until after next month's general election, amid growing international backlash against the illegal project.

The settlement is designed to block the establishment of a Palestinian state and has been roundly condemned across the world, including by some of Israel's closest allies who have threatened to impose sanctions if construction goes ahead.

A statement from Attorney-General Gali Baharav-Miara's office said Sunday that the decision was made to "reduce concern over the tender being used for election propaganda".

The E1 area is situated between occupied East Jerusalem and the Maale Adumim settlement bloc. If built, it would effectively cut the West Bank in two, making a future contiguous Palestinian state impossible.

First proposed more than three decades ago, successive Israeli governments have refused to green-light the settlement due to fierce international opposition. That changed under the far-right Netanyahu government, which approved the project and opened the construction tender ahead of the election in defiance of its Western allies.

In August, the Housing Ministry issued a tender for 1,234 housing units that was supposed to close a week before the election on 19 October. A second tender for another 2,167 units is set to open on 25 October, two days before Israelis head to the polls.

The announcement of the tender drew condemnation from some of Israel's closest allies, including Germany, Italy, the UK and France, as well as Arab states.

Far-right fury

The attorney-general's decision was met with fury by the far-right finance minister Bezalel Smotrich, who has been at the forefront of efforts to expedite the settlement's construction.

In a video posted on social media, Smotrich accused Baharav-Miara of election interference and working for Gadi Eisenkot, the leader of the Yashar party and Prime Minister Benjamin Netanyahu's main rival in the election.

"Baharav-Miara is interfering in the election campaign and working for Gadi Eisenkot, who announced that he would stop construction in order to enable the establishment of a Palestinian state – a terrorist state in the heart of the State of Israel," he said.

Eisenkot is opposed to a Palestinian state but has criticised the E1 settlement because of Israel's deepening isolation.

Guy Yifrach, the mayor of Maale Adumim, said the council would appeal the attorney-general's decision, calling it a "politically influenced intervention".

International opposition

Western countries supportive of the two-state solution have long opposed E1.

The UK earlier this month became the first G7 country to announce plans to impose sanctions on Israeli companies involved in the settlement project.

Alongside a ban on settlement goods, Foreign Secretary Ed Miliband vowed to take action against banks, construction companies, and real estate firms working in settlements.

The Foreign Office has not offered details of the measures, which it says will be introduced in the coming 6-9 months. But the threat of financial sanctions has alarmed Israeli banks, almost all of which are involved in financing settlements.

The UK is among a growing number of Western countries beginning to impose sanctions in response to the intensifying settler terrorism in the occupied West Bank and the Netanyahu government's rampant settlement expansion.

Ireland, the Netherlands, Spain, Norway and Belgium have already committed to banning settlement goods. They are now joined by France, Canada and nine other countries which signed the joint statement with the UK earlier this month.

In the US, 19 Democratic senators have tabled legislation to impose sanctions on individuals and companies involved in E1, a bill that could gain traction in Congress should the party take the House and the Senate in November's midterm elections.