TEL AVIV, March 8, 2011 (WAFA) - Knesset approved a law Monday night to punish Israeli citizens who participate in any campaign to boycott Israeli institutions.

According to Haaretz, the bill was initiated by MK David Rotem and MK Robert IIatov. 24 Knesset members put forth the bill, 32 supported it while 12 opposed.

The draft law includes calls for imposing sanctions against foreign citizens and organizations that boycott or organize such activities, with fines reaching up to 30,000 NIS ($8100), while foreign citizens could be banned from coming into Israel for 10 years.

Zeev Elkin of the Likud party said: “although it is illegal to boycott Israel in the US, Israel cannot punish an Israeli who urges an American company to boycott us.”  He added: “we will ask the US to take legal actions against its citizens who boycott Israel.”

Although this law violates freedom of expression, minister and Likud MK Gilad Erdan said: “our goal is to create a balance between the citizens’ freedom of expression and our desire as a democracy to protect the economy.”

The bill came as a response to punish Israeli companies which won a tender for the construction of the Palestinian city Rawabi on condition that they do not supply services or sell merchandise manufactured in Jewish settlements in the West bank.

Knesset also passed the “citizenship law” which allows Israel to revoke Israeli citizenship from individuals if they are convicted of any offence against the state, especially “terror” and espionage.

Arab MK Hanin Zoabi of the National Democratic Assembly said: “The Arabs for which the bill is intended are hardly citizens at all. To revoke citizenship – one must first grant citizenship. Arabs here are conditional citizens, because they will never be patriotic Zionists.”