UK Awards £10.7M to Settlement-Linked Firms
New government contracts issued weeks after Foreign Secretary Ed Miliband announced a sanctions package targeting settlement activity.
By Vikram Harrison ·
The United Kingdom government has issued public contracts totaling approximately £10.7 million to companies with ties to Israeli settlements in the West Bank. An investigation by Al Jazeera revealed that these deals were published after Foreign Secretary Ed Miliband announced a comprehensive sanctions package in parliament on September 8.
During his address, Miliband stated that entities financing or facilitating settlements would face UK sanctions. He described the settlements as illegal. Government sources say the sanctions have not yet entered into force. The implementation process could take up to nine months.
In the meantime, the government continued to award deals to firms listed by the United Nations for settlement-related activities. Motorola Solutions and its subsidiaries received two contracts worth about £87,900 for police communications. Israel reportedly uses Motorola technology for security and surveillance infrastructure in the West Bank.
Construction projects account for the largest portion of the spending. Three subsidiaries of Heidelberg Materials were named in 14 contracts totaling £10.4 million for roadworks and resurfacing in England. The company’s Israeli subsidiary, Hanson Israel, owns the Nahal Raba quarry. This quarry is located on land belonging to Palestinian villages.
Thomas & Adamson International Limited received an £84,000 contract. It is a subsidiary of the French engineering group Egis. The UN lists Egis for providing services that support settlement maintenance, though the company disagrees with this inclusion. Breas Medical, owned by Chinese conglomerate Fosun International, also received a £98,000 contract. Fosun International is also on the UN list.
Senior UK government figures told Middle East Eye that they intend to implement comprehensive sanctions. This includes measures against companies providing construction and real estate services for settlement expansion. The plan remains in place even if Benjamin Netanyahu is no longer prime minister.
Some civil servants have attempted to weaken the sanctions by creating blockages. Officials within the Foreign Office argued that the measures should target Israeli companies but exclude British companies with similar ties. Other officials suggested excluding companies operating mostly within Israel itself. This approach would restrict the focus to companies operating primarily in settlements. If implemented fully, the new regime would require British banks, pension funds, and asset managers to divest from settlement-linked companies. It would also prevent financial institutions from 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 and the ongoing discussions about the scope of the sanctions package.
