Norway Drafts Prison Law for Israel Settlement Trade

OSLO — Norway’s Ministry of Foreign Affairs has published a draft statute that would criminalize certain trade, real estate, and investment activities linked to Israeli settlements in the West Bank and East Jerusalem. The public consultation period runs through Sept. 19.

The proposed restrictions would apply to Norwegian citizens and companies. If enacted by the Storting, Norway’s parliament, they would prohibit the import and export of goods originating in settlements, ban real estate purchases and construction services in those areas, and outlaw financial investments in businesses headquartered or maintaining operational facilities in settlement zones.

Under Section 7 of the ministry’s consultation document, intentional violations would carry fines and prison sentences of up to three years. Negligent non-compliance would be punishable by fines or imprisonment for up to six months.

The draft statute marks one of the most stringent legal measures proposed by a Western nation targeting commercial ties with communities beyond the pre-1967 armistice lines. Norwegian Foreign Minister Espen Barth Eide said the measure aims to prevent domestic entities from aiding or profiting from settlement growth.

Norway’s Ministry of Foreign Affairs grounded its legal justification in international rulings, including a July 2024 advisory opinion by the International Court of Justice (ICJ), as well as United Nations Security Council Resolution 2334, adopted in December 2016.

The ICJ opinion declared Israel’s presence in the occupied Palestinian territories unlawful and stated that UN member states are obliged not to recognize the situation as legal or render aid or assistance in maintaining it. Resolution 2334 called on states to distinguish in their dealings between the territory of the State of Israel and the territories occupied since 1967.

Eide said Israeli settlement expansion drives population displacement, triggers localized conflict, and impedes a negotiated two-state solution. The proposed law would nevertheless exempt humanitarian aid and commercial activity deemed by the Norwegian government to have “sufficient Palestinian ties,” provided the transactions do not contribute to the expansion or upkeep of Israeli settlements.

Opponents contend that those exemptions would create a system of selective enforcement. Dag Juliussen, national director of the Norwegian branch of the International Christian Embassy Jerusalem, said the criteria could result in commercial discrimination based on identity.

Juliussen said purchasing agricultural produce from Arab, Bedouin, or Christian residents in the territory could remain legal, while purchasing similar goods from Jewish producers in the same geographic zone would become a punishable crime. He argued that the policy misinterprets the conflict and deepens regional divisions.

The Norwegian Ministry of Foreign Affairs rejected claims that the law targets individuals based on religion or identity. In its consultation text, the ministry said the law targets settlement infrastructure built past the pre-1967 lines, while preserving legal trade with Palestinian entities and ensuring humanitarian aid flows remain uninterrupted.

The proposal has intensified a diplomatic rift between Oslo and Jerusalem. Israeli officials condemned the bill as a punitive policy that damages bilateral relations.

Danny Danon, Israel’s Ambassador to the United Nations, called the measure an expression of a hostile policy toward Israel. Danon said Norway’s actions damage bilateral ties, encourage political rejectionism, and disconnect Oslo from regional realities.

The Israeli Foreign Ministry’s Northern Europe Department issued a statement on social media accusing Norwegian leadership of prioritizing domestic political interests over constructive regional diplomacy.

The legislative push follows actions that have strained relations between the two countries since the Oct. 7, 2023, Hamas-led attacks on Israel. On May 28, 2024, Norway formally recognized a Palestinian state in a coordinated move with Spain and Ireland. Israel responded by recalling its ambassador from Oslo and later revoking the diplomatic accreditation of Norwegian diplomats handling ties with the Palestinian Authority.

The development represents a shift for Norway, which historically served as a mediator in Middle East diplomacy. In 1993, secret negotiations hosted in the country led to the Oslo Accords between Israel and the Palestine Liberation Organization (PLO), creating the Palestinian Authority and establishing a framework for interim governance in parts of the West Bank and Gaza Strip.

An estimated 500,000 Israeli settlers currently live in the West Bank alongside approximately 2.7 million Palestinians. An additional 200,000 to 230,000 Israelis reside in East Jerusalem.

The European Union established guidelines in 2015 requiring products from West Bank settlements to be explicitly labeled as originating from settlements rather than “Made in Israel.” The European Court of Justice upheld that policy in 2019, while Norway’s draft proposal goes further by attaching criminal sanctions and potential prison sentences directly to settlement-linked business dealings.