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Ben & Jerry鈥檚 said Monday it was going to stop selling its ice cream in the Israeli-occupied West Bank and contested east Jerusalem, saying the sales in the territories sought by the Palestinians are 鈥渋nconsistent with our values.鈥�

The announcement was one of the strongest and highest-profile rebukes by a well-known company of Israel鈥檚 policy of settling its citizens on war-won lands. The settlements are widely seen by the international community as illegal and obstacles to peace.

The move by the Vermont-based ice cream company drew swift reproach from Israeli Prime Minister Naftali Bennett, a former leader of the West Bank settlement movement who called it 鈥渁n immoral decision and I believe that it will turn out to be a business mistake, too.鈥�

The company informed its longstanding licensee听鈥� responsible for manufacturing and distributing the ice cream in Israel 鈥撎齮hat it will not renew the license agreement when it expires at the end of next year, according to a statement posted on the Vermont-based company鈥檚 website.

Ben & Jerry鈥檚 statement cited 鈥渢he concerns shared with us by our fans and trusted partners.鈥�

The company did not explicitly identify those concerns, but last month, a group called Vermonters for Justice in Palestine called on Ben & Jerry鈥檚 to 鈥渆nd complicity in Israel鈥檚 occupation and abuses of Palestinian human rights.鈥�

鈥淗ow much longer will Ben & Jerry鈥檚 permit its Israeli-manufactured ice cream to be sold in Jewish-only settlements while Palestinian land is being confiscated, Palestinian homes are being destroyed, and Palestinian families in neighborhoods like Sheik Jarrah are facing eviction to make way for Jewish settlers?鈥� the organization鈥檚 Ian Stokes said in a June 10 news release.

In a Monday statement, the organization said Ben & Jerry鈥檚 actions did not go far enough.

鈥淏y maintaining a presence in Israel, Ben & Jerry鈥檚 continues to be complicit in the killing, imprisonment, and dispossession of Palestinian people and the flaunting of international law,鈥� said the Vermont group鈥檚 Kathy Shapiro.

The Israeli foreign ministry called Ben & Jerry鈥檚 decision 鈥渁 surrender to ongoing and aggressive pressure from extreme anti-Israel groups鈥� and the company was cooperating with 鈥渆conomic terrorism.鈥�

鈥淭he decision is immoral and discriminatory, as it singles out Israel, harms both Israelis and Palestinians and encourages extremist groups who use bullying tactics,鈥� the ministry said in a statement. It also called on Ben & Jerry鈥檚 to withdraw its decision.

While Ben & Jerry鈥檚 products will not be sold in the settlements, the company said it will stay in Israel through a different arrangement. But doing so will be difficult. Major Israeli supermarket chains, the primary distribution channel for the ice cream maker, all operate in the settlements.

Founded in Vermont in 1978, but currently owned by consumer goods conglomerate Unilever, Ben & Jerry鈥檚 has not shied away from social causes. While many businesses tread lightly in politics for fear of alienating customers, the ice cream maker has taken the opposite approach, often espousing progressive causes.

Ben & Jerry鈥檚 took a stand against what it called the Trump administration鈥檚 regressive policies by rebranding one of its flavors Pecan Resist in 2018, ahead of midterm elections.

The company said Pecan Resist celebrated activists who were resisting oppression, harmful environmental practices, and injustice. As part of the campaign, Ben & Jerry鈥檚 said it was giving $25,000 each to four activist entities.

Aida Touma-Sliman, an Israeli lawmaker with the Joint List of Arab parties, wrote on Twitter that Ben and Jerry鈥檚 decision Monday was 鈥渁ppropriate and moral.鈥� She added that the 鈥渙ccupied territories are not part of Israel鈥� and that the move is an important step to help pressure the Israeli government to end the occupation.

The West Bank and East Jerusalem were captured by Israel in the 1967 Mideast war. Some 700,000 Israeli settlers now live in the two territories 鈥撎齬oughly 500,000 in the occupied West Bank and 200,000 in east Jerusalem.

Israel treats the two areas separately, considering east Jerusalem as part of its capital. Meanwhile, Israel considers the West Bank as disputed territory whose fate should be resolved in negotiations. However, the international community considers both areas to be occupied territory. The Palestinians seek the West Bank as part of a future independent state, with East Jerusalem as their capital.

Israel in recent years has become a partisan issue in Washington, with many Democrats 鈥撎齪articularly of the party鈥檚 progressive wing 鈥� growing increasingly critical over a number of Israeli policies, including settlement construction, and former Prime Minister Benjamin Netanyahu鈥檚 close ties with former President Trump. Vermont Senator Bernie Sanders has been an outspoken critic of Israel.

The BDS movement 鈥撎齭horthand for a grassroots, Palestinian-led movement that advocates boycotts, divestment, and sanctions against Israeli institutions and businesses 鈥撎齛pplauded Ben & Jerry鈥檚 decision as 鈥渁 decisive step towards ending the company鈥檚 complicity in Israel鈥檚 occupation and violations of Palestinian rights,鈥� but called upon the company to do more.

鈥淲e hope that Ben & Jerry鈥檚 has understood that, in harmony with its social justice commitments, there can be no business as usual with apartheid Israel,鈥� a statement read.

The Israeli government says the BDS movement masks a deeper aim of delegitimizing or even destroying the entire country.

The Yesha Council, an umbrella group representing the roughly 500,000 Israelis living in West Bank settlements, said 鈥渢here鈥檚 no need to buy products from companies that boycott hundreds of thousands of Israeli citizens because of the place they choose to live.鈥� It said Ben & Jerry鈥檚 decision 鈥渂rought a bad spirit to such a sweet industry鈥� and called on Israelis to buy locally produced ice cream this summer.

Ben & Jerry鈥檚 move on Monday may not be the final chapter in the saga. Airbnb announced in 2018 that it would stop advertising properties in Israeli settlements. Several months later, after coming under harsh criticism from Israel and a federal lawsuit by Israeli Americans who owned property in the settlements, the company reversed its decision.

This story was reported by The Associated Press. Josef听Federman reported from Jerusalem. Associated Press reporters Lisa Rathke in Marshfield, Vermont and Ilan Ben Zion in Jerusalem contributed to this report.

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