Israeli Attorney General Menachem Mazuz on Thursday warned that the International Court of Justice (ICJ) decision on the separation wall could lead to international anti-Israel actions, including sanctions.

The ICJ ruled that the separation wall erected on West bank territories was illegal, should be dismantled, and that Palestinians should be compensated for damage caused.

Israel so far ignored the ruling and pressed on with the construction of the West Bank barrier.

The warning was included in the report of the special committee Mazuz formed upon the request of Israeli Prime Minister Ariel Sharon.

‘It is difficult to overestimate the negative ramifications that the ICJ’s decision will have on the State of Israel in various spheres, even on issues beyond the separation fence,’ Mazuz wrote.

‘The decision could gradually have an effect on rulings by Israeli courts about the administration of military authority in the territories and about the building of the fence.’ He added.

‘The decision creates a political reality for Israel on the international level, that may be used to expedite actions against Israel in international forums, to the point where they may result in sanctions.’ Mazuz concluded.

The attorney general recommended immediate steps to bring the separation Wall’s route and arrangements in the seam-line areas in line with the principles set by the Israeli High Court of Justice in its June decision.

Mazuz believes that such steps could ease the mounting international criticisms and signal that Israel is upholding international law according to the decisions of its own courts.

He proposes that Israeli spokespeople stress that Israel upholds international law and accepts the ICJ’s opinion, even though it was based on partial, and partly obsolete, data.

Meanwhile, the Israeli High Court of Justice on Thursday gave the state 30 days to explain the implications of the decision by the ICJ, concerning the separation wall, on Israel’s policy.

The President of the Israeli High Court Aharon Barak said: ‘At some stage, we will have to deal with the ruling of the ICJ at The Hague.”

Barak’s remarks were made during the court deliberations over an appeal submitted by residents of Shoqbah village, near the West bank city of Ramallah, against the construction of the barriers on their land.

Barak also said that with the exception of Jerusalem, which Israel considers as an integral part of Israel, Israel needs to deal with the ICJ ruling.

The court refused to issue an injunction to freeze the work in the site after the state committed to return back the situation as it was if the court rules t move the wall to a different route.