MOSCOW, March 11, 2010 (AFP) - Russia criticised as unacceptable Thursday a decision by the Israeli government to build new settlement homes in annexed Arab east Jerusalem.

"We consider such actions by Israel as unacceptable," the foreign ministry said in a statement, adding that Moscow had learned of the decision with "great concern".

"The actions contradict the generally accepted international legal basis for a (Middle East) settlement (and) predetermine the results of the negotiating process," it added.

Israel's interior ministry said Tuesday it had approved construction of 1,600 new housing units in Ramat Shlomo, a Jewish settlement in the mainly Arab eastern sector of Jerusalem.

A permanent UN Security Council member, Russia is also part of the international quartet for peace in the Middle East that includes the European Union, the United Nations and the United States.