"Moscow perceived with great concern this decision made in Israel. Without doubt, it could have the most negative consequences for achieving a long-term and reliable Israeli-Palestinian settlement … International efforts aimed at relaunching of the peace process are in jeopardy," the statement read.
"Bearing this in mind, any actions predetermining results of such a dialogue are counterproductive," the ministry concluded.
On Monday, the Israeli Parliament approved the so-called Regulation Law despite the December UN Security Council resolution calling on Israel to immediately and completely cease all settlement activities in the area.
The law legalizes 3,800 settlements on the private Palestinian land in the West bank of the river Jordan. Under the law, if Palestinian owners of land are known, they will get money compensation or another piece of land. The lands, whose Palestinian owners are unidentified, may also be used for the settlements.