Palestinian President Mahmoud Abbas has urged foreign companies to boycott businesses based in Israeli settlements, calling the enterprises "a violation of international law".
Mr Abbas spoke after meeting European Council President Herman van Rompuy in Brussels, as part of the Palestinian leader's visit to several European countries.
His comments coincided with Israeli Prime Minister Benjamin Netanyahu's meeting with US Secretary of State John Kerry in Rome, where they discussed the Israeli-Palestinian peace talks.
Mr Abbas has used his European trip to condemn Israel and suggest that its continued settlement in "occupied territories" is halting the peace process.
On Tuesday, he told the Baltic News Service that if Israel refused to concede its settlements, the peace talks would fail.
He said: "We will not accept it", adding that, if the talks collapse, "they will be the reason, not us".