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. This move was welcomed by US State Department deputy spokesman Vedant Patel, who called for Israel to extend the waiver for at least 12 months and release the rest of the withheld revenue.
Palestinian Prime Minister Mohamed Mustafa confirmed that NIS 435 million (107 million euros) was transferred from revenues withheld and collected on behalf of the Palestinian Authority. Efforts are ongoing to recover the remaining funds, which amount to approximately 6 billion shekels (1.47 billion euros), according to the Palestinian news agency WAFA.
The transfer of funds is contingent on approval by the Israeli cabinet led by Prime Minister Benjamin Netanyahu to legalize new outposts in the occupied West Bank and impose sanctions against senior Palestinian officials for supporting international legal proceedings against Israel. Israeli authorities collect these funds on behalf of the Palestinian Authority and transfer them monthly after deducting costs for services like electricity and water.
In recent years, payments have been frozen on multiple occasions due to tensions in the Palestinian-Israeli conflict. The ongoing discussions and negotiations aim to ensure the transfer of the remaining funds and maintain financial stability for the Palestinian Authority.