EU and Russia urged Wednesday the Zionist entity to backtrack on its decision to accelerate building of new settlements in response to Palestinian accession to UNESCO.

EU foreign policy chief Catherine Ashton urged ‘Israelis’ on Wednesday to backtrack on their decision to accelerate building of new settlements in response to Palestinian accession to UNESCO.

"I am deeply concerned by the latest Israeli decisions to expedite settlement activities in response to Palestinian accession to UNESCO," Ashton said in a statement.

"Israeli settlement activity is illegal under international law including in East Jerusalem and an obstacle to peace. We have stated this many times before," she said.

"We call on Israel to reverse this decision and call on both sides to continue their engagement with the Quartet on advancing peace efforts," Ashton said, referring to the four powers seeking to revive Israeli-Palestinian negotiations.

In the meantime, Russia on Wednesday called on ‘Israeli’ entity to cancel its decision to accelerate settlement building in occupied territory in retaliation for Palestine's accession to UNESCO.

"We insistently urge the Israeli government to refrain from any unilateral actions that prejudge the result of the talks’ process on questions of the final status of the Palestinian territories, including East Jerusalem," the Russian Foreign Ministry said in a statement.

Russia spoke after a number of European leaders on Wednesday urged ‘Israeli’ entity to abandon its decision to accelerate construction of Jewish settlements in annexed Arab east Jerusalem and elsewhere in the West Bank, Zionist Prime Minister Benjamin Netanyahu's inner cabinet made the decision on Tuesday a day after the UN Educational, Scientific and Cultural Organization accepted Palestine as a full member.

Russia also criticized Israel's decision to withhold Palestinian tax revenues.

"Such a measure contradicts Israeli obligations according to earlier concluded agreements and could lead to the degradation of the Palestinian economy," it warned.

Britain, France and Germany also condemned the move as a blow to Middle East peace efforts.

Occupying entity decided to freeze the transfer of customs duties levied on goods destined for Palestinian markets that transit through under-occupation control ports, which constitute a large percentage of the Palestinian budget.