GAZA CITY (AFP) – Top Hamas leader Ismail Haniya looked set to be appointed new Palestinian prime minister as Israel prepared yesterday to impose a series of sanctions after the Islamists form a new government.

Hamas sources said Haniya, who led the radical movement to a landslide victory in last month’s general election, was clear favourite to be installed as head of government after Saturday’s inaugural session of the new parliament.

But he was unlikely to be able to visit the Palestinian Authority’s seat of government in Ramallah any time soon as Israel said it would prevent any Hamas premier from travelling from the Gaza Strip to the West Bank.

Hamas received a diplomatic boost when an expected invitation for talks in Moscow arrived, but the European Union said it would continue to freeze out a group that the 25-nation bloc and Washington regards as a terrorist movement.

In an interview with AFP, Haniya said Hamas would not renounce violence once it comes to power, but would work with the moderate Palestinian Authority president Mahmud Abbas who is committed to a negotiated settlement with Israel.

Palestinian officials said Abbas intends to use his speech to parliament on Saturday to remind MPs and the new administration that everyone should respect “one weapon”, only the “lawful weapon” of the security services.

Security chaos prevails throughout much of the Palestinian territories, where armed groups largely operate above the law, and Israel is demanding that Abbas insist all militant factions, including Hamas, disarm.

Abbas will also ask the incoming government to respect agreements signed by the Palestinians and Israel, one of which is the stalled roadmap peace plan that calls for the creation of a Palestinian state alongside Israel.

Haniya himself said the head of government “will be from the Gaza Strip” and that Hamas would hold “discussions with other parliamentary groups” about joining a coalition after MPs are sworn in.

Haniya will have to observe proceedings in the Ramallah-based parliament via videolink after Israel said it would not issue travel permits.

“Those who belong to a terrorist movement that advocates the destruction of the State of Israel cannot claim any privilege concerning their freedom of movement,” said an official in the prime minister’s office.

Israel was also plotting economic sanctions, preparing to withhold millions of dollars in tax duties from the Palestinian Authority, amounting toabout one-third of the Palestinians’ budget.

“The idea is to put the Palestinians on a diet, but not make them die of hunger,” prime ministerial adviser Dov Weisglass was quoted as saying at a meeting to discuss how to deal with a Hamas government.