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Arab World

Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.

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Arab World

Türkiye Calls Israel’s Recognition of Somaliland ‘Illegitimate’

This handout photograph taken and released by the Turkish presidential press service on December 30, 2025, shows Türkiye’s President Recep Tayyip Erdogan (R) and Somalia's President Hassan Sheikh Mohamud (L) shaking hands before their meeting in Istanbul. (Photo by Handout / Turkish Presidential Press Service / AFP)
This handout photograph taken and released by the Turkish presidential press service on December 30, 2025, shows Türkiye’s President Recep Tayyip Erdogan (R) and Somalia's President Hassan Sheikh Mohamud (L) shaking hands before their meeting in Istanbul. (Photo by Handout / Turkish Presidential Press Service / AFP)
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Türkiye Calls Israel’s Recognition of Somaliland ‘Illegitimate’

This handout photograph taken and released by the Turkish presidential press service on December 30, 2025, shows Türkiye’s President Recep Tayyip Erdogan (R) and Somalia's President Hassan Sheikh Mohamud (L) shaking hands before their meeting in Istanbul. (Photo by Handout / Turkish Presidential Press Service / AFP)
This handout photograph taken and released by the Turkish presidential press service on December 30, 2025, shows Türkiye’s President Recep Tayyip Erdogan (R) and Somalia's President Hassan Sheikh Mohamud (L) shaking hands before their meeting in Istanbul. (Photo by Handout / Turkish Presidential Press Service / AFP)

Türkiye’s president on Tuesday called Israel's recognition of Somaliland "illegitimate and unacceptable" as he hosted a visit by his Somali counterpart.

"Preserving the unity and integrity of Somalia in all circumstances holds special importance in our view. Israel's decision to recognize Somaliland is illegitimate and unacceptable," Turkish leader Recep Tayyip Erdogan said in a press conference alongside Somali President Hassan Sheikh Mohamud.

Israel sparked criticism last Friday when it said it was officially recognizing Somaliland -- a breakaway territory in Somalia's north.

The declaration was a first for the territory, which in 1991 had unilaterally declared secession from Somalia.

Israel's move has drawn widespread criticism from the African Union, Egypt and the European Union, which insist on war-torn Somalia's sovereignty.

Türkiye has frequently clashed with Israel over a range of issues, especially over the conflict in Gaza and Israeli obstruction of aid to the Palestinian territory.

Mohamud said Israeli Prime Minister Benjamin Netanyahu's "aggressive position, which also includes Somalia, is unacceptable".

He called Netanyahu's Somaliland declaration "a violation of international law" and "the start of insecurity and instability, especially for Somalia and the African region".

Arab World

10 Countries Warn of ‘Catastrophic’ Gaza Situation

Palestinians stand next to a tent set up on the rubble of buildings destroyed during Israeli air and ground operations in the Sheikh Radwan neighborhood, in Gaza City, Tuesday, Dec. 30, 2025. (AP)
Palestinians stand next to a tent set up on the rubble of buildings destroyed during Israeli air and ground operations in the Sheikh Radwan neighborhood, in Gaza City, Tuesday, Dec. 30, 2025. (AP)
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10 Countries Warn of ‘Catastrophic’ Gaza Situation

Palestinians stand next to a tent set up on the rubble of buildings destroyed during Israeli air and ground operations in the Sheikh Radwan neighborhood, in Gaza City, Tuesday, Dec. 30, 2025. (AP)
Palestinians stand next to a tent set up on the rubble of buildings destroyed during Israeli air and ground operations in the Sheikh Radwan neighborhood, in Gaza City, Tuesday, Dec. 30, 2025. (AP)

The foreign ministers of 10 nations on Tuesday expressed "serious concerns" about a "renewed deterioration of the humanitarian situation" in Gaza, saying the situation was "catastrophic". 

"As winter draws in, civilians in Gaza are facing appalling conditions with heavy rainfall and temperatures dropping," the ministers of Britain, Canada, Denmark, Finland, France, Iceland, Japan, Norway, Sweden and Switzerland said in a joint statement released by the UK's Foreign Office. 

"1.3 million people still require urgent shelter support. More than half of health facilities are only partially functional and face shortages of essential medical equipment and supplies. The total collapse of sanitation infrastructure has left 740,000 people vulnerable to toxic flooding," the statement added. 

The ministers said they welcomed the progress that had been made to end the bloodshed in Gaza and secure the release of Israeli hostages. 

"However, we will not lose focus on the plight of civilians in Gaza," they said, calling on the government of Israel to take a string of "urgent and essential" steps. 

These included ensuring that international NGOs could operate in Gaza in a "sustained and predictable" way. 

"As 31 December approaches, many established international NGO partners are at risk of being de-registered because of the government of Israel's restrictive new requirements," the statement said. 

It also called for the UN and its partners to be able to continue their work in Gaza and for the lifting of "unreasonable restricts on imports considered to have a dual use". 

This included medical and shelter equipment. 

The foreign ministers also called for the opening of crossings to boost the flows of humanitarian aid into Gaza. 

While welcoming the partial opening of the Allenby crossing, they said other corridors for moving goods remained closed or severely restricted for humanitarian aid, including Rafah. 

"Bureaucratic customs processes and extensive screenings are causing delays, while commercial cargo is being allowed in more freely," the statement said. 

"The target of 4,200 trucks per week, including an allocation of 250 UN trucks per day, should be a floor not a ceiling. These targets should be lifted so we can be sure the vital supplies are getting in at the vast scale needed," it added. 

Arab World

UN Condemns Israel's Moves against Agency for Palestinian Refugees

UNRWA center targeted by Israeli shelling in northern Gaza (DPA)
UNRWA center targeted by Israeli shelling in northern Gaza (DPA)
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UN Condemns Israel's Moves against Agency for Palestinian Refugees

UNRWA center targeted by Israeli shelling in northern Gaza (DPA)
UNRWA center targeted by Israeli shelling in northern Gaza (DPA)

The United Nations warned Tuesday that recent actions by Israel against the UN agency for Palestinian refugees risked depriving millions of people of basic services such as education and healthcare.

Israel's parliament passed new legislation on Monday formally stripping the United Nations Relief and Works Agency (UNRWA) of diplomatic immunity, and barring Israeli companies from providing water or electricity to the agency's institutions, AFP reported.

According to UNRWA, the legislation also grants the Israeli government the authority to expropriate the agency's properties in East Jerusalem, including its headquarters and main vocational training center.

UNRWA chief Philippe Lazzarini condemned the legislation as "outrageous", decrying it on social media as "part of an ongoing, systematic campaign to discredit UNRWA and thereby obstruct the core role that the agency plays providing human-development assistance and services to Palestine refugees".

Filippo Grandi, the outgoing head of the UN refugee agency, UNHCR, and a former UNRWA chief, also criticised the move as "very unfortunate".

In an interview with AFP, he highlighted that UNRWA, unlike other UN agencies, provides basic public services such as education and healthcare to the millions of registered Palestinian refugees it serves across Gaza and the West Bank, as well as in Lebanon, Jordan and Syria.

"If you deprive those people of those services... then you had better find a substitute," he said, warning: "I think it would be very difficult."

"At the moment, there is a great risk that millions of people will be deprived of basic services if UNRWA is further deprived of space to work, and resources to work."

Israel has been ratcheting up pressure on UNRWA over the past two years.

It has accused the agency of providing cover for Hamas militants, claiming that some UNRWA employees took part in the militant group's October 7, 2023 assault on Israel, which sparked the war in Gaza.

A series of UN-linked internal and external investigations found some "neutrality-related issues" at UNRWA, but stressed Israel had not provided conclusive evidence for its headline allegation.

Grandi criticised the torrent of accusations that have swirled around the agency.

"UNRWA is a very indispensable organization in the Middle East," he said.

"Contrary to much of the frankly baseless rhetoric that we have heard in the past couple of years, UNRWA is a force for peace and stability," he added.

"In a region in which you need every bit of stability and efforts towards peace, it would be really irresponsible to let such an important organization decline further."