US Pause on Funding UN Relief Agency for Palestinians May Become Permanent 

Trucks carrying aid to Gaza residents cross from Rafah border to Deir Al-Balah town, southern Gaza Strip, 08 March 2024. (EPA)
Trucks carrying aid to Gaza residents cross from Rafah border to Deir Al-Balah town, southern Gaza Strip, 08 March 2024. (EPA)
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US Pause on Funding UN Relief Agency for Palestinians May Become Permanent 

Trucks carrying aid to Gaza residents cross from Rafah border to Deir Al-Balah town, southern Gaza Strip, 08 March 2024. (EPA)
Trucks carrying aid to Gaza residents cross from Rafah border to Deir Al-Balah town, southern Gaza Strip, 08 March 2024. (EPA)

US officials are preparing for a pause on funding the main UN agency for Palestinians to become permanent due to opposition in Congress, even as the Biden administration insists the aid group's humanitarian work is indispensable.

The United States, along with more than a dozen countries, suspended its funding to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) in January after Israel accused 12 of the agency's 13,000 employees in Gaza of participating in the deadly Oct. 7 Hamas attack.

The UN has launched an investigation into the allegations, and UNRWA fired some staff after Israel provided the agency with information on the allegations.

The United States - which is UNRWA's largest donor, providing $300-$400 million annually - said it wants to see the results of that inquiry and corrective measures taken before it will consider resuming funding.

Even if the pause is lifted, only about $300,000 - what is left of already appropriated funds - would be released to UNRWA. Anything further would require congressional approval.

Bipartisan opposition in Congress to funding UNRWA makes it unlikely the United States will resume regular donations anytime soon, even as countries such as Sweden and Canada have said they will restart their contributions.

A supplemental funding bill in the US Congress that includes military aid to Israel and Ukraine and is supported by the Biden administration, contains a provision that would block UNRWA from receiving funds if it becomes law.

US officials say they recognize "the critical role" UNRWA plays in distributing aid inside the densely-populated enclave that has been brought close to famine by Israel's assault over the past five months.

"We have to plan for the fact that Congress may make that pause permanent," State Department spokesperson Matthew Miller told reporters on Tuesday.

Washington has been looking at working with humanitarian partners on the ground, such as UNICEF and the World Food Program (WFP), to continue giving aid.

But officials are aware that UNRWA is hard to replace.

"There are other organizations that are now providing some distribution of aid inside Gaza, but that is primarily the role that UNRWA is equipped to play that no one else is due to their long-standing work and their networks of distribution and their history inside Gaza," Miller said.

‘UNRWA is a front’

A few Senate Democrats, including Senator Chris Van Hollen, along with some progressive House members, have opposed an indefinite ban on funding to UNRWA.

But any new funding would need the support of at least some Republicans, who hold a majority in the House of Representatives. Many have expressed their opposition to UNRWA.

"UNRWA is a front, plain and simple," Republican lawmaker Brian Mast, chairman of the House Foreign Affairs Subcommittee on Oversight and Accountability, said in a statement.

"It masquerades as a relief organization while building the infrastructure to support Hamas ... It is literally funneling American tax dollars to terrorism," Mast said.

UNRWA was established in 1949 by a UN General Assembly resolution, after the war that followed Israel's founding, when 700,000 Palestinians fled or were driven from their homes.

Today it directly employs 30,000 Palestinians, serving the civic and humanitarian needs of 5.9 million descendants of those refugees, in the Gaza Strip, West Bank and in vast camps in neighboring Arab countries.

In Gaza, UNRWA runs the enclave's schools, its primary healthcare clinics and other social services, and distributes humanitarian aid.

William Deere, director of UNRWA's Washington Representative Office, told Reuters that US support accounts for one-third of UNRWA's budget.

"That's going to be very hard to overcome," he said. "Please remember that UNRWA is more than Gaza. It’s health care and education and social services. It’s East Jerusalem, the West Bank, Jordan, Syria, Lebanon."

Fighters from Hamas, which administers Gaza, killed 1,200 people in the Oct. 7 attack and took 253 hostages, according to Israeli tallies, an assault that sparked one of the bloodiest wars in the decades-long Israeli-Palestinian conflict.

Israel's retaliatory military campaign on the densely populated enclave has killed more than 31,000 Palestinians, according to Gaza authorities, while infrastructure has been obliterated and hundreds of thousands are now close to famine.



What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
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What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.