Germany and other states warn against involvement in E1 settlement project

The warning in full

At the center is the E1 project, a settlement project in the West Bank. The states are not warning generally against doing business with Israel, but rather against specific involvement in tenders connected to this project.

The warning cites two possible consequences for companies. Applying could damage the company's reputation. According to the states, there is also the risk of violating international law.

Which countries are involved

The countries supporting this warning include Germany, France, Italy, Great Britain, the Netherlands, Norway, and Canada. The initiative thus extends beyond individual European states and also includes Canada.

The declaration is intended as a signal to companies. Before potentially applying, they are to weigh the legal and reputational consequences that involvement could have. The warning contains no specific information about individual affected companies or ongoing procurement processes.

The states tie their warning to a reference to international law. They refer to the danger that work related to the E1 project could touch upon provisions of international law. The specific legal norms said to be affected are not elaborated in the available facts.

Risks for companies

With this, the signatories are relying on deterrence through a clear signal to the construction industry. Companies are to refrain from applying before they find themselves in a process with possible legal and reputational consequences.

The warning is a political and economic response to the settlement plans. It shows that several states want to hold companies accountable when deciding on participation. The facts contain no information on whether sanctions, individual bans, or further steps are planned.