On 18 November 2024, the US Department of the Treasury imposed sanctions on Amana, Israel’s largest settlement development organisation, and its subsidiary Binyanei Bar Amana Ltd (BBA). These sanctions, part of a multilateral effort with the UK and Canada, are aimed at addressing illegal settlement expansion and land dispossession in the West Bank.
The sanctions come against the backdrop of international condemnation of Israel’s policies in the occupied Palestinian territories.
In July 2024, the International Court of Justice (ICJ) issued a landmark advisory opinion, declaring Israel’s occupation of Palestinian territories unlawful. The ICJ called on Israel to end its presence in the region “as rapidly as possible” and urged nations to avoid supporting activities that perpetuate the occupation.
The ICJ ruling, requested by the United Nations General Assembly, deemed Israeli settlements in the West Bank and East Jerusalem violations of international law. The court highlighted Israel’s discriminatory policies, resource exploitation, and annexation efforts as breaches of laws against acquiring territory by force and as obstructions to Palestinian self-determination.
Details of US sanctions
The Biden administration’s latest action follows Executive Order (E.O.) 14115, which allows sanctions against individuals and organisations undermining peace and stability in the West Bank.
The Treasury Department’s Office of Foreign Assets Control (OFAC) identified Amana as central to the extremist settlement movement, supporting illegal outposts and sanctioned individuals responsible for violence.
Amana’s activities include financing and building settlement outposts, such as Meitarim Farm, which has been linked to land seizures. BBA, its subsidiary, constructs and sells homes in these settlements, further expanding their reach.
Deputy Treasury Secretary Wally Adeyemo affirmed the US commitment to holding destabilising actors accountable, stating, “The United States, along with our allies and partners, remains committed to holding accountable those who seek to facilitate these destabilising activities.”
The sanctions block all US-held assets of Amana and BBA and prohibit US persons or entities from engaging with them. Non-US persons involved in transactions with the sanctioned entities may also face penalties.
Context of international law
Israel’s settlement expansion has been widely condemned by the international community. The UN and most nations consider the West Bank, Gaza Strip, and East Jerusalem as occupied territories, captured by Israel during the 1967 war. The ICJ ruling emphasised that Israel’s actions, including settlement construction and resource exploitation, violate international law.
The ICJ opinion is nonbinding but carries significant legal and moral weight. It reaffirms the obligation of other nations to refrain from actions that support Israel’s presence in the occupied territories, including financial or logistical assistance to settlements.
US policy and political dynamics
The Biden administration’s sanctions also address growing domestic pressure. In October 2024, nearly 90 Democratic lawmakers urged President Joe Biden to impose measures against Israeli officials and entities linked to settler violence and land dispossession. These lawmakers expressed frustration with what they perceived as insufficient US action against violations of Palestinian rights.
While advocates for Palestinian self-determination welcomed the sanctions as a step towards accountability, critics argued that such measures might strain US-Israel relations.
The incoming Trump administration is expected to adopt a more supportive stance towards Israeli settlements. President-elect Trump’s designated ambassador to Israel, Mike Huckabee, has openly backed settlement expansion and dismissed international critiques of Israeli policies.
The sanctions come amid mounting criticism that the Biden administration’s overall approach to Israel has been permissive, often described by critics as offering a “blank cheque” to the Israeli government.
While these sanctions mark a rare instance of accountability, they may be viewed as too little, too late in addressing long-standing issues of settlement expansion and violations of international law.
The move, however, reflects growing pressure within the Democratic Party and the international community to address violations in the West Bank.
It also signals an attempt by the administration to align its final months in office with international consensus, including the International Court of Justice’s recent ruling on the unlawfulness of Israel’s occupation.
