Kallas calls says Israeli settlements should be treated like Russian-occupied Crimea

European Union foreign policy chief Kaja Kallas has called for the bloc to ban trade with illegal Israeli settlements in the occupied Palestinian Territories, arguing that the EU should apply the same approach it took to Russian-occupied Crimea.

Kallas said the EU should maintain a consistent approach to international law. When Russia annexed Crimea in 2014, the EU promptly banned trade with the peninsula, and she argued that the same principle should apply to occupied Palestinian territory, says the Middle East Eye.

The economic impact of a settlement trade ban would be limited because of the relatively small volume of goods involved, Kallas acknowledged, but she said the measure would carry major symbolic significance.

The proposal could also avoid the EU's requirement for unanimity on foreign policy decisions. Framing the measure as an EU trade policy would allow it to be approved by a qualified majority of member states.

EU-wide foreign policy sanctions against Israel have been blocked by opposition from countries including Germany, Hungary, the Czech Republic and Slovenia.

Kallas said European institutions were facing increasing criticism over their failure to impose sanctions on Israel in response to its actions in Gaza. Several national governments have been pressing the European Commission to put forward an EU-wide trade ban.

UK sanctions and European pressure

The proposal follows a decision by the United Kingdom on 8 September to impose trade sanctions on Israeli settlements, including settlements in Syria's Golan Heights.

Ten other European countries and Canada signed a joint statement with Britain expressing their intention to introduce national restrictions or support EU-wide measures.

The moves followed Israel's approval in August of the E1 settlement project, which envisages construction of 3,400 new housing units in occupied Palestinian territory.

The settlement expansion has drawn international criticism and added to pressure on European governments to take further action.

Israeli and US backlash

Israel has responded to Britain's measures with diplomatic retaliation.

Israeli Foreign Minister Gideon Saar closed the British consulate in East Jerusalem and barred 11 British Members of Parliament from entering Israel.

US Ambassador to Israel Mike Huckabee also criticised British Foreign Secretary Ed Miliband, accusing him of "Jew hate" and threatening retaliation.

Kallas's position also marks a shift from some of her earlier public statements. She has reportedly compared Israel's treatment of Palestinians to apartheid South Africa in private, while in March 2025 she publicly expressed solidarity with Israel.