The European Council has warned that companies that become involved in the construction of the E1 settlement in the occupied West Bank could face legal, economic and reputational consequences, according to Middle East Eye.

The warning came days before the October 19 deadline for bids in one of the construction tenders. The plan connects West Bank settlements with occupied East Jerusalem and would effectively cut the West Bank in half, making a Palestinian state unviable, according to the outlet. The alert came after Britain’s sanctions on Israeli settlements — including sanctions on bodies that finance settlement construction — came into effect earlier this week.