Cabinet Approves Legalization of Five Outposts and Sanctions Against PA

By Yoni Weiss

The cabinet on Thursday approved the legalization of five outposts and a series of sanctions against the Palestinian Authority, according to a statement by Finance Minister Bezalel Smotrich.

In exchange for these measures, Smotrich will reportedly authorize the unfreezing of tax funds withheld from the PA. He will also extend a waiver allowing Israeli banks to work with their Palestinian counterparts.

Smotrich stated that these actions were taken “in light of Palestinian Authority action at the International Criminal Court, International Court of Justice, the UN, the pending arrest warrants against the country’s leaders and its push for unilateral recognition of a Palestinian state.”

The outposts set to be legalized are Evyatar in the northern Shomron, Sde Efraim and Givat Asaf in the central Shomron, and Heletz and Adorayim in the south. The cabinet also approved the publication of tenders for thousands more homes in other communities.

Proposed steps against the PA include canceling various benefits for officials, revoking exit visas, restricting movement, taking enforcement action against incitement, and transferring enforcement responsibilities from the PA to Israel in a nature preserve in the Yehudah desert.

Previously, Smotrich pledged to withhold funds collected by Israel on behalf of the PA and allow the banks’ waiver to expire after June until the Israeli government adopted punitive measures against the PA for its lobbying against Israel internationally. The lack of funds has further destabilized the PA.

It is unclear if this scheme will placate Washington. A US official warned that the sides might find themselves in the same situation a month or two later if Smotrich decides to withhold the funds again.

The Biden administration has imposed an effective boycott of Smotrich, refusing to meet with him or fellow right-wing Minister Itamar Ben Gvir to avoid legitimizing many of their views regarding the Palestinians.