UN Blacklist of Companies in West Bank Settlements Expands, Israeli Industry Fears Crisis

The Union of Industrialists in Israel has expressed deep concern following the United Nations High Commissioner for Human Rights' addition of 61 companies to its blacklist of firms operating in Israeli settlements in the occupied West Bank, including East Jerusalem. This expansion brings the total number of companies on the list, first published in 2020, to 214. The majority are Israeli, but the list also includes companies from ten other countries, such as France, Germany, Spain, China, and the United States.

The database is considered highly sensitive, as blacklisted companies may face boycott campaigns and divestment efforts aimed at pressuring Israel over its settlement expansion in the West Bank, home to over three million Palestinians. The number of companies implicated in human rights violations on the blacklist has risen from 158 to 219, spanning various economic sectors. Notable additions include major Israeli corporations like the food company Tenneco, Israel Railways, banks such as Bank Leumi and Discount Bank, cellular providers like Cellcom, and construction firms. International companies, including Spain's CAF, which is involved in Jerusalem's light rail project, are also listed.

Among the newly added firms are Israeli pesticide manufacturer Adama, part of the China-owned Syngenta Group, Israeli real estate investment firm Alony Hetz, and Spanish logistics company Salvaat Logistica. The Israeli diplomatic mission in New York claimed the list is a "distorted mechanism created by a deeply flawed body with an automatic majority against Israel." Approximately 60 other companies were evaluated but not included as they did not meet UN criteria for involvement in activities violating Palestinian self-determination, such as supplying demolition equipment for Palestinian homes or providing services to settlements.

Some companies, like UK-based online travel agency eDreams and Spanish counterpart eDreams, were removed from the original list after reassessment. The Union of Industrialists fears the expanded blacklist, particularly at this time, will create significant obstacles for Israeli companies abroad, whose businesses have already suffered during the recent Gaza conflict. They are concerned that international firms will now avoid dealing with blacklisted companies.

In response, the Union of Industrialists labeled the expansion a "political step in the framework of systematic discrimination by the Commissioner against Israel," arguing that international law does not prohibit business activities in conflict zones and that legitimate commercial interests should not be classified as human rights violations. "We are heading into a difficult period and Israeli exports are heading for a huge crisis," stated Lior Levi, head of the Union of Industrialists, citing the UN's narrative, currency fluctuations, and reports of exporters already facing difficulties.