U.S. sanctions group that builds illegal West Bank settlements, with close ties to Israeli government

A general view of the West Bank Jewish settlement of Efrat ,Tuesday, Nov. 12, 2024. (AP Photo/Ohad Zwigenberg)

The U.S. on Monday imposed sanctions on organizations and firms involved in illegal settlement development in the occupied West Bank, including a well-established decades-old group that has close ties with Israeli leadership.

Treasury sanctioned Amana, the largest organization involved in illegal settlement development in the West Bank, and its subsidiary Binyanei Bar Amana Ltd. Already sanctioned by Britain and Canada, Amana is one of the major funders and supporters of unauthorized settlements in the Israeli-occupied West Bank. Peace Now, a settlement tracking group, says its assets are valued at around 600 million Israeli shekels, or about US$160 million, and that it has a yearly budget stretching into tens of millions of shekels.

Amana, which is based in the West Bank and has no known connection to the U.S. appliance maker, over the past few years has underwritten loans, signed contracts, bought equipment and funded infrastructure projects for new settlements, according to Peace Now. The settlements, small farming outposts, have become some of the primary drivers of violence and displacement of Palestinians living in the West Bank.

Additionally, the State Department imposed diplomatic sanctions on Eyal Hari Yehuda Co., which provides construction logistics to sanctioned groups, as well as company owner Itamar Yehuda Levi. The co-founder of the already sanctioned nonprofit group Hashomer Yosh, Shabtai Koshlevsky, and Israeli citizen Zohar Sabah, who has perpetrated acts of violence on Palestinians, also were hit with sanctions.

The penalties come as settlers in the territory celebrate the incoming Trump administration, believing it will likely take a more favorable approach to the settlements. During his first term, Trump took unprecedented steps to support Israel’s territorial claims, including recognizing Jerusalem as its capital and moving the U.S. Embassy there, and recognizing Israel’s annexation of the Golan Heights.

Treasury’s Deputy Secretary Wally Adeyemo said the U.S. “remains committed to holding accountable those who seek to facilitate these destabilizing activities, which threaten the stability of the West Bank, Israel, and the wider region.”

Among other things, the sanctions deny the people and firms access to any property or financial assets held in the U.S. and prevent U.S. companies and citizens from doing business with them.

In February, President Joe Biden issued an executive order that targets Israeli settlers in the West Bank who have been accused of attacking Palestinians and Israeli peace activists in the occupied territory. That order is used to justify the financial penalties against the companies and men.

In response, Texans for Israel, a Christian nonprofit, Israeli nonprofit Regavim and others sued the Biden administration in Amarillo, Texas, in August over its sanctions against Israeli extremists in the West Bank.

Eitay Mack, a human rights lawyer who has spent years campaigning for the sanctions on violent West Bank settlers, said the sanctions on Amana were “an earthquake for the settlement project and especially the shepherd’s farms.” He called on the U.S. to extend the sanctions now to firebrand Israeli Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir, also a far-right settler in Prime Minister Benjamin Netanyahu’s Cabinet.

Amana’s leadership has appeared at pro-settlement events alongside Cabinet members. Peace Now says the group’s secretary-general, Zeev Hever, was greeted by Smotrich at a June conference where Smotrich laid out his plans for the West Bank.

Violence against Palestinians and their displacement have only picked up since the Israel-Hamas war began on Oct. 7, 2023. Around 8,000 Palestinians have been displaced in the West Bank during that time and over 700 killed, according to the U.N. Office for the Coordination of Humanitarian Affairs and Palestinian health officials.

The Associated Press previously reported that the sanctions measures have had minimal impact, instead emboldening settlers as attacks and land-grabs escalate, according to Palestinians in the West Bank, local rights groups and sanctioned Israelis who spoke to AP. Additionally, Smotrich has previously vowed to intervene on sanctioned settlers’ behalf.

Israel captured the West Bank along with east Jerusalem and the Gaza Strip in the 1967 Mideast war. The Palestinians want those territories for their hoped-for future state.

Settlement growth and construction have been promoted by successive Israeli governments stretching back decades, but it has exploded under Netanyahu’s far-right coalition, which has settlers in key Cabinet posts. There are now well over 100 settlements and 500,000 Israeli settlers sprawling across the territory from north to south — a reality, rights groups say, dimming any hopes for an eventual two-state solution.

State Department spokesman Matthew Miller said “we once again call on the Government of Israel to take action and hold accountable those responsible for or complicit in violence, forced displacement, and the dispossession of private land. The United States will continue to promote accountability for those who further destabilize conditions in the West Bank and support extremist violence in the region.”