"The financial squeeze that is being applied to the Palestinian public is not conducive to peace." This isn't about a short sighted policy, nor is it about peace. This is a very detailed and well-thought-out policy to destroy the Palestinian economy to ensure peace is impossible, enabling Israel to steal more land. Peace isn't the objective of Israel, peace is a hurdle that must be avoided.
U.S. sanctions Russia's state-owned arms exporter Rosoboronexport (Reuters)
from the article: World Bank says underestimated depth of Palestinian crisis