Natan Sharansky also served as a contributing editor to "The Jerusalem Report" and as a Board member of Peace Watch. In 1995, Sharansky and Yoel Edelstein founded the Yisrael BaAliyah party (a play of words, since "aliya" means both Jewish emigration to Israel, and "rise", thus the party name means "(People of) Israel immigrating (to the State of Israel)", as well as "Israel on the rise"), promoting the absorption of the Soviet Jews into Israeli society. The party won seven Knesset seats in 1996. It won 6 seats in the Israeli legislative election, 1999, gaining two ministerial posts, but left the government
Natan Sharansky on 11 July 2000 in response to suggestions that Prime Minister Ehud Barak's negotiations with the Palestinians would result in a division of Jerusalem. After Ariel Sharon won a special election for Prime Minister in 2001, the party joined his new government, and was again given two ministerial posts. In the January 2003 elections, the party was reduced to just two seats. Sharansky resigned from the Knesset, and was replaced by Edelstein. However, he remained party chairman, and decided to merge it into Likud (which had won the election with 38 seats). The merger went through on 10 March 2003,