Full Breakdown
UK Sanctions on Firms Linked to Illegal Israeli Settlements Spotlight Delek Group’s North Sea Oil Dividends
By Drooid · · How we work
Core Event
In early September 2023 the UK government announced new sanctions targeting goods and services tied to Israeli settlements deemed illegal under international law. A few weeks later, on September 24 Ithaca Energy paid a dividend of just under £100 million to Delek Group, a shareholder listed by the United Nations Human Rights Office (OHCHR) as linked to settlements in the West Bank. Delek’s inclusion on the OHCHR database was confirmed on September 25. The payout adds to roughly £786 million in dividends Delek has received from Ithaca since 2020, and a projected £220 million could flow from Ithaca’s 20 percent stake in the Rosebank oil field if that project proceeds.
Background & Context
Delek Group, an Israeli conglomerate, has been on the UN-maintained settlement list since 2020. It holds a 61 percent stake in Mehadrin, Israel’s largest agricultural exporter, which has faced boycott calls but has never appeared on the OHCHR list. Ithaca Energy, based in Aberdeen, owns stakes in six of the UK’s ten largest offshore fields and a 20 percent interest in the Rosebank development. The UK consented to Rosebank on 27 September 2023 while Delek was already on the UN list. Scotland’s Court of Session ruled the approval unlawful in January 2025 for failing to account for emissions, prompting a resubmission of plans now under UK review.
Data & Statistics
- Delek’s share of Ithaca dividends (2020-April 2024): ? £786 million.
- Dividend paid on September 24: ? £100 million to Delek.
- Potential future flow from Rosebank stake: ? £220 million.
Official Statements & Responses
- UK Foreign Secretary Ed Miliband announced the sanctions on 8 September, describing settler violence as “ethnic cleansing” and warning of “legal and reputational consequences” for firms bidding on the contested E1 construction project.
- “Decisions on the consenting of individual offshore oil and gas fields are a matter currently reserved for the UK Government.” — The Scottish Government
- Delek Group issued a spokesperson statement rejecting any link to settlements, calling its UN listing “erroneous” and asserting that dividends are “ordinary distributions” from Ithaca’s commercial operations.
- UK Foreign, Commonwealth & Development Office said it is taking “clear action” in response to a “moral emergency” in Palestine and is creating new powers to sanction entities that support illegal settlement activity, while declining to comment on specific future designations.
Criticism & Opposition
Neil Cowan of Amnesty said the approval runs counter to the UK’s stated commitments. Scottish Greens leaders Zack Polanski and Gillian Mackay called for a categorical block on Delek’s profits from UK oil, urging the governments to honor boycott, divestment and sanction policies. Yair D’Vir of B’Tselem warned that Israeli actions aim to “eliminate Palestinian collective existence” through settlement expansion and violence.
Conflicting Reports & Gaps
- UN vs. Delek: The OHCHR database lists Delek as linked to settlements, while Delek disputes the listing and plans legal challenges.
- Mehadrin: Allegations of exporting settlement-produced dates have not resulted in OHCHR listing, and the company denies involvement.
- Sanctions status: Miliband’s announced measures have not yet been enacted; the UK government has not confirmed which entities will ultimately be designated.
What’s Next
The UK government is reviewing the resubmitted Rosebank development plans and has indicated that further designation powers will be used to target companies facilitating illegal settlements. No specific timeline for additional sanctions has been provided.