"The UN's Human Rights Commissioner began sending letters two weeks ago to 150 companies in Israel and around the world, warning them that they are about to be added to a database of companies doing business in Israeli settlements in the West Bank and in East Jerusalem, senior Israeli officials and Western diplomats involved in the matter told Haaretz.
The Israeli official, who requested to stay anonymous due to the sensitivity of the issue, noted that the letters, sent by Zeid Ra'ad Al Hussein, said these firms were doing business in the "occupied Palestinian territories" and could thus find themselves on the UN blacklist for companies acting in violation of 'internal law and UN decisions.' The letters, copies of which also reached the Israeli government, request that these firms send the commission clarifications about their business activities in settlements.
A Western diplomat, who also requested to remain anonymous, noted that of the 150 companies, some 30 were American, and a number are from countries including Germany, South Korea and Norway. The remaining half are Israeli companies...
Senior Israeli officials said the Israeli fear of divestment or scaled-down business due to the blacklist is already becoming a reality. They said that the Economy Ministry's Office of Strategic Affairs has already received information that a number of companies who received the letters have responded to the human rights commissioner by saying they do not intend to renew contracts or sign new ones in Israel.
'These companies just can't make the distinction between Israel and the settlements and are ending their operations all together,' the senior Israeli official said. 'Foreign companies will not invest in something that reeks of political problems – this could snowball.'
An inter-ministerial committee comprising the ministries of Foreign Affairs, Strategic Affairs, Justice and Economy is still working to try to prevent the list's publication. Nonetheless, the assessment among most of those involved in the government's efforts is that it is inevitable and that the list will likely be made public by the end of December..."