Israel Transfers Millions to Palestinian Authority: Amid Tensions, Talks and Approval Needed for New Settlement Outposts and Sanctions

The Palestinian Prime Minister, Mohamed Mustafa, has confirmed that the Israeli Ministry of Finance has transferred NIS 435 million (107 million euros) to the Palestinian Authority from revenues that were withheld and collected on behalf of the Palestinian Authority. Mustafa made this announcement during a meeting with his cabinet. According to WAFA, the remaining funds amount to approximately 6 billion shekels (1.47 billion euros).

Meanwhile, the Israeli Finance Minister, Bezalel Smotrich, has agreed to transfer the last three months of withheld revenue to the Palestinian Authority and extend the exemption for Israeli banks working with the Palestinian side for an additional four months. The US State Department deputy spokesman, Vedant Patel, welcomed this move and called on Israel to extend the waiver for at least 12 months and release the rest of the withheld revenue.

The transfer of funds is dependent on approval by Prime Minister Benjamin Netanyahu’s cabinet to legalize new outposts in occupied West Bank territory and impose sanctions against senior Palestinian officials who support international legal proceedings against Israel. The Israeli authorities collect these funds on behalf of the Palestinian Authority and transfer them monthly after deducting costs for services such as electricity and water.

In recent years, payments have been frozen multiple times due to tensions between Palestine and Israel. Ongoing discussions and negotiations are currently underway to ensure that the remaining funds are transferred and financial stability is maintained for the Palestinian Authority.