UK urges firms not to take part in E1 settlement tender or risk sanctions

LONDON, Oct 19 (Reuters) - British foreign minister Ed Miliband on Monday urged companies and individuals not to proceed with bids for the E1 West Bank settlement project on Monday, warning those involved in the construction of illegal settlements could face sanctions.

"We urge businesses and individuals not to proceed with bids for E1 construction tenders," Miliband said in a statement. "They should be aware of legal and reputational consequences, including the risk of involving themselves in serious breaches of international law."

The E1 project would bisect the Israeli-occupied West Bank and cut it off from East Jerusalem, fragmenting the land Palestinians hope will form the heart of a state.

Many Western states and campaign groups have opposed the project over concerns that it could undermine a future peace deal with the Palestinians.

(Reporting by Sam Tabahriti; editing by William James)