Foreign AffairsDaily Government Brief5 source articles

UK and allies sanction West Bank settler finance networks

UK and partners imposed sanctions over West Bank settler violence and reaffirmed two-state policy, alongside EU financing for Palestinian MSMEs.

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Key Developments

On 9 June 2026, the UK government sanctioned networks financing settler violence in the West Bank, coordinated with Canada, France and Norway. A parallel joint message urged Israeli accountability and reaffirmed a two-state solution, the UK government said. The steps came amid AP News reporting on wider allied measures.

Key Statistics

  • $5 million in UK humanitarian aid to Gaza, according to the UK government
  • $10 million in UK financial assistance for the Palestinian Authority, the UK government said
  • Historical: $395 million in EU funding for Palestinian MSMEs via local banks, the European Commission said
  • Historical: €2.1 million in EU technical assistance under the facility, according to the European Commission
  • Historical: €400 million total size of the EU MSME facility, the European Commission noted
  • Historical: €1.6 billion total programme envelope supporting Palestine finance, per the European Commission

Main Body

On 9 June 2026, the UK government announced sanctions against individuals and entities linked to financing settler violence in the occupied West Bank, coordinated with Canada, France and Norway, according to a government statement. The same day, foreign ministers from Australia, Canada, France, Norway and the United Kingdom issued a joint appeal for Israeli accountability and restated support for a two-state solution, the UK government said.

The UK measures were designed to disrupt financial flows that enable extremist attacks on Palestinian civilians, and they were accompanied by guidance discouraging economic activity in illegal settlements, the government statement said. The UK also cited $5 million in humanitarian aid for Gaza and $10 million in financial assistance for the Palestinian Authority as part of its response, according to the government statement. The action took place as allies announced parallel steps, amid AP News reporting of wider coordinated sanctions.

As a parallel economic support track, on 8 June 2026 the European Commission and the European Investment Bank implemented a €400 million facility to expand credit for Palestinian micro, small and medium enterprises through local banks, providing up to $395 million in funding and €2.1 million in technical assistance, according to the European Commission. The Commission said the facility formed part of a €1.6 billion programme intended to strengthen the Palestinian financial ecosystem, the European Commission noted.

Together, the targeted sanctions and the MSME financing indicated a combined pressure-and-support approach that sought to deter violence while shoring up economic resilience consistent with a two-state policy framework, as set out by the UK government. The UK also warned at the UN Security Council that broader regional escalations risked undermining peace efforts, highlighting the stakes for stability across the Levant, according to a UK statement.

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AI-assisted summary: Created with help from AI models; it may omit context or contain errors. Verify important claims with original sources. Informational only, not professional advice.