The approval of the "E1" project would bisect the West Bank and cut it off from East Jerusalem, fragmenting territory Palestinians seek for an independent state. It was announced last week by far-right Israeli Finance Minister Bezalel Smotrich and received the final go-ahead from a Defence Ministry planning commission on Wednesday.

Foreign Ministry strongly rejects a statement by foreign ministers condemning construction in E1 area near Jerusalem, calling it an attempt to impose "foreign dictates" and a form of "racism."