Israel’s political-security cabinet on Sunday morning approved a plan to transfer frozen Palestinian Authority tax funds allocated to Gaza to a third party, likely Norway, until the end of the war.

The plan was presented to the cabinet at the request of the Biden administration.

The agreement was reached following intensive negotiations between Prime Minister Binyamin Netanyahu, Strategic Affairs Minister Ron Dermer, senior U.S. officials led by Ambassador Jack Lew, and Finance Minister Betzalel Smotrich, who insisted that the funds, amounting to 275 million shekels per month, will not reach Gaza or any Palestinian Authority authorities in the Strip.

It should be noted that despite the demands of the Biden administration that the funds are essential to the survival of the Palestinian Authority, Defense Minister Benny Gantz and Shin Bet head Ronen Bar did not agree to allow the transfer of the funds. Smotrich insisted that Hamas effectively controls all Palestinian Authority affairs in Gaza and therefore the transfer of the funds will sabotage the military campaign and aid Hamas. His position was accepted.

A condition of the plan, to be guaranteed by the US, is that the third party will respect Israel’s decision and will not transfer equivalent sums from its own resources to the Palestinians to replace the funds Israel has frozen. The parties signed an additional deal stating that if the agreement is violated and the third party transfers another budget to the Palestinian Authority or Gaza, Smotrich has the right to immediately halt all fund transfers to the Palestinian Authority.

Following the meeting, Smotrich tweeted: “Not a single shekel will go to Gaza! And this time with American backing for the policy that I have been leading from day one and with my authorization in advance to stop all funds to the Palestinian Authority if one shekel goes to Gaza.”

National Security Minister Itamar Ben-Gvir was the only minister who opposed the decision, stating after the meeting: “Unfortunately, Prime Minister Binyamin Netanyahu keeps moving the red line. Sometimes, they transfer fuel [to the Gaza Strip], sometimes they concede on humanitarian aid in exchange for other humanitarian concessions. Last week, they started transferring trucks of flour, and now they reached a decision that does not ensure that the money will not reach the Nazis in Gaza. Unfortunately, even among the right-wing, some are still influenced by the ‘misconception,’ and among other things, think that ‘good solutions can come from Norway'” [a reference to the Oslo Accords].

(YWN Israel Desk – Jerusalem)