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01 October 2025

Germany Imposes Sanctions On Israel Over Settlements

Berlin announces new trade restrictions and import bans targeting Israeli settlements after recent military actions in the occupied Palestinian territories.

Germany has taken a significant step in its diplomatic relationship with Israel, announcing sanctions valued at more than 2.46 million euros (approximately 2.9 million dollars) in response to Israeli military operations in the occupied Palestinian territories. The German government revealed the new measures on October 1, 2025, in what many observers see as a marked shift in Berlin’s approach to the long-standing conflict between Israel and the Palestinians.

According to the German Foreign Ministry, the sanctions are set to take effect on October 22, 2025. The measures include restrictions on imports from the occupied territories and a ban on direct trade with Israeli settlements. While the scope of the sanctions is relatively limited in financial terms, the move carries considerable symbolic weight, signaling Germany’s growing unease with Israel’s recent military actions.

In a statement, the German Foreign Ministry emphasized that these steps are “additional sanctions” and do not constitute a military embargo. Instead, the sanctions are described as a political and diplomatic response to Israel’s conduct in the occupied Palestinian territories. The ministry clarified, “The measures are a direct response to the escalation of military operations and are intended to underscore Germany’s commitment to international law.”

The sanctions specifically target Israeli settlements, with an estimated value of 2.46 million euros for the period between September 13 and October 22, 2025. This figure represents a dramatic reduction when compared to Germany’s previous export licenses to Israel. According to the ministry’s official response to a parliamentary inquiry, export approvals to Israel between January 1 and August 8, 2025, totaled approximately 250 million euros. The sharp decrease in export value underscores the seriousness of Germany’s new stance.

The German government’s decision comes in the wake of mounting international criticism of Israeli military operations in the Gaza Strip and other occupied areas. Over the past months, Berlin has gradually intensified its public criticisms of the government led by Israeli Prime Minister Benjamin Netanyahu. However, until now, Germany had refrained from imposing any concrete punitive measures or sanctions.

The current sanctions package is notable for what it does and does not include. While it restricts imports and bans direct trade with settlements, it stops short of a full military embargo. The German Foreign Ministry was careful to clarify the distinction, stating, “These are additional sanctions, not a military embargo.” This nuance reflects Berlin’s attempt to balance its historical support for Israel with growing pressure from domestic and international actors to respond more forcefully to the situation in the occupied territories.

For its part, the Israeli government has responded with frustration and disappointment. Prime Minister Netanyahu, in direct communication with German Chancellor Friedrich Merz, accused Germany of “rewarding Hamas for terrorism.” Netanyahu’s remarks, reported by the German Press Agency (dpa), underscore the deepening rift between the two countries over the issue. The Israeli leader made it clear that he views the German measures as a betrayal, expressing his dismay at what he perceives as Berlin’s shift away from its traditional stance of unwavering support for Israel.

Despite the tensions, the German government has stopped short of imposing broader sanctions or a complete halt to military cooperation. In August 2025, Chancellor Merz had already ordered a temporary suspension of military equipment exports that could be used in the ongoing conflict in Gaza. This move was widely interpreted as a turning point in Germany’s policy toward Israel. During the first five weeks of the suspension, no new export approvals were granted. The recent approval of exports worth 2.46 million euros, covering the period up to September 22, 2025, marks a cautious resumption, but the nature of the exported goods remains unclear.

According to the German Economy Ministry, the recent shipments pertained to “other military materials” and did not include war weapons. The ministry noted that the export licenses covered eight categories, including missiles, torpedoes, warships, and naval equipment. However, given that these exports are not classified as war weapons and the total value is relatively small, it is likely that the shipments consisted mainly of accessories or support equipment.

For context, Germany’s relationship with Israel has historically been shaped by a sense of responsibility stemming from the Holocaust, as well as a commitment to Israel’s security. This foundation has made Berlin one of Israel’s most steadfast allies in Europe. However, the escalation of violence in the occupied territories and growing calls for accountability have put pressure on the German government to reconsider its approach. The latest sanctions reflect both internal and external demands for a more balanced policy.

Within Germany, the decision has sparked debate among political factions. The Left Party, which submitted the parliamentary inquiry leading to the Economy Ministry’s disclosure, has long called for stricter controls on arms exports and greater accountability for Israel’s actions. Other parties have expressed concern that the sanctions could damage Germany’s strategic partnership with Israel, while some civil society groups have welcomed the move as a necessary step toward upholding international law.

Internationally, Germany’s actions are being closely watched. The European Union has faced its own challenges in formulating a unified response to the conflict. Some member states have pushed for tougher measures against Israel, while others have cautioned against jeopardizing longstanding diplomatic ties. Germany’s decision to impose targeted sanctions may serve as a bellwether for broader shifts in European policy.

It remains to be seen how the new sanctions will affect the situation on the ground. Critics argue that the measures are largely symbolic and unlikely to compel significant changes in Israeli policy. Supporters, however, contend that even limited sanctions send an important message about the costs of continued military operations in the occupied territories. As one German official put it, “We must make clear that there are consequences for actions that violate international norms.”

Looking ahead, the German government has left the door open to further action, depending on developments in the region. For now, the sanctions represent a carefully calibrated effort to express disapproval without severing ties altogether. As the October 22 implementation date approaches, both supporters and critics will be watching closely to see whether Germany’s move prompts any meaningful change—or simply adds another chapter to the long and complicated history of the Israeli-Palestinian conflict.

Germany’s decision, while measured, signals a new chapter in its approach to Middle East diplomacy—one that balances historical obligations, political realities, and a growing demand for accountability on the world stage.