Miri Regev told the Israel Festival in a letter that she will withdraw funding for the three-week event opening today unless the two shows featuring nudity are canceled.
Nudity "is contrary to and harms the basic values" of Israeli society and "the sensitivities of broad populations," she said.
The festival is the country's major art exhibition held in Jerusalem featuring live musical, theater, dance and visual art. The city is home to substantial Orthodox Jewish and religious Muslim populations, for whom nudity is taboo.
The festival website informs visitors that Pindorama, a Brazilian dance routine, and a Spanish play "And what will I do with this sword?" both contain nudity.
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The Culture and Sport Ministry provides around 20 percent of the annual festival's $2.8 million budget, and the event met the ministry's criteria for support, organizers said.
Last year, the ruling Likud minister instituted a new measure to cut funding for cultural institutions that do not perform in West Bank settlements, causing outrage. She also froze funds to an Arabic-language theater in Haifa for its production of a play that she claims incites violence against Israeli soldiers.
Gila Almagor, a celebrated Israeli actress, decried Regev's ultimatum to the Israel Festival as "censorship." Regev's office did not respond to Associated Press' requests for comment.