" "This was a Palestinian provocation and an attempt to advance their state without recognizing Israel," Steinitz said. "We said it would not pass quietly," he reminded.

Steinitz said the funds would be used instead "to offset the PA's electricity debts." Gaza derives at least 40 percent of its power from the Israeli electricity grid; the PA-controlled areas of Judea and Samaria derive 100 percent of their electricity from Israel.

It also circumvented the mandate for final status negotiations with Israel as required by the internationally-recognized Oslo Accords signed by the PA and Israel in the 1990s. By abrogating that agreement, there now exists a legal question as to whether or not the entire document is null and void – including the Paris Protocols, the section delineating economic agreements between Israel and the PA.

In response, the day after the U.N. vote the Israeli government authorized construction of 3,000 housing units in "E1" - an area between Jerusalem and Maale Adumim - as well as in other areas of Jerusalem, Judea and Samaria."