Critics are slamming Norway over new legislation that they say singles out Jews. The proposed law could send individuals to prison for up to three years for knowingly conducting certain forms of business with Israeli communities in the West Bank.

The proposal, introduced by Norway’s Ministry of Foreign Affairs, would prohibit the importation of goods originating in Israeli communities in the West Bank, including East Jerusalem and the exportation of goods to those communities. It would also restrict certain real estate transactions, construction and engineering services and investments in businesses headquartered and operating there.

Intentional violations could result in fines, imprisonment for up to three years or both, while negligent violations could carry fines, imprisonment for up to six months or both, according to proposed legislation. The release states that Israeli settlements violate international law and undermine prospects for a two-state solution in which Israelis and Palestinians can live in peace and freedom.

"By proposing legally binding prohibitions, the government makes it clear that Norwegian citizens and Norwegian companies must not profit from or support activities that help sustain Israel’s unlawful settlement activity in Palestine," Foreign Minister Espen Barth Eide said in the release.

Eide also said the settlements contribute to "displacement, extreme violence and a situation that makes a peaceful solution impossible."

The ministry cited United Nations Security Council findings and International Court of Justice advisory opinions supporting its position on the settlements’ illegality. It said the proposed restrictions would cover imports and exports, property purchases, certain property-related services and acquisitions of businesses with headquarters and production in the settlements, while safeguarding legitimate Palestinian activities and humanitarian assistance.

The proposed legislation would exempt humanitarian activities, as well as transactions the government determines have "sufficient Palestinian ties" and do not contribute to the construction, expansion or maintenance of Israeli communities.

Dag Juliussen, national director of the Norwegian branch of the International Christian Embassy Jerusalem, said that the exemption could permit business with Palestinian residents while criminalizing comparable transactions involving Jewish residents in the same territory.

"The bill is based on a fundamentally misguided understanding of the Middle East conflict, which in turn rests on a rewriting of history," Juliussen said in a statement to Fox News Digital. "In addition, such a law would effectively serve as a reward for terrorism and, at its core, is deeply racist toward Jews."

The consultation document does not characterize the proposal as targeting Jews. Instead, it says the measure is intended to prevent commercial activity that helps maintain Israeli communities beyond the pre-1967 lines, while shielding qualifying Palestinian commerce and humanitarian assistance.

Under the proposal, exemptions would be evaluated according to the people involved who benefit from the transaction and whether the activity contributes to the construction, expansion or maintenance of an Israeli community.

Juliussen said purchasing agricultural products from Muslim, Christian, Arab or Bedouin residents could be permitted, while purchasing similar products from Jewish residents could become a criminal offense. He argued that the determining factor would effectively be the identity of the seller.

Norway formally recognized a Palestinian state in 2024 and has become one of Israel’s strongest European critics since the Hamas-led terrorist attacks of Oct. 7, 2023.

Juliussen warned that the proposed legislation would not bring Israelis and Palestinians closer to peace but could instead deepen divisions and encourage extremist forces in the region.