EU to delay part of 82 mln euro payment to UNRWA - sources

The European Commission is one of the biggest donors to UNRWA and the agency's boss, Philippe Lazzarini, said last month that the 82 million euro payment from Brussels due around the end of February was "absolutely critical". That sum from the EU executive is meant to cover UNWRA operations including staff salaries this year, sources said.

The European Commission will give the U.N. Palestinian refugee agency (UNRWA) only part of a planned 82 million euro ($88.56 million) payment now due to concerns raised by Israeli accusations that 12 staff were involved in the Oct.7 attack on Israel, people familiar with the matter told Reuters on Friday. The Commission is expected to make an official announcement at around 1130 GMT, the sources said. They said the Commission planned to make the payment in installments over time, rather than with a single lump sum.

UNRWA provides aid and basic services to Palestinians caught up in the war in Gaza but was thrown into crisis after Israel alleged in January that 12 of the agency's 13,000 staff in the enclave were involved in the Hamas attack on the country. UNRWA dismissed all the accused staff but many major donors, including the United States, Britain and several European Union countries, suspended payments to the agency or said they would not approve new funding until the matter was resolved.

The agency said a total of $450 million in funding was at risk and warned its operations across the Middle East would be "severely compromised" from March. The European Commission is one of the biggest donors to UNRWA and the agency's boss, Philippe Lazzarini, said last month that the 82 million euro payment from Brussels due around the end of February was "absolutely critical".

That sum from the EU executive is meant to cover UNWRA operations including staff salaries this year, sources said. There was no immediate word on the size of each tranche to be paid. But one of the sources said the first tranche, to be paid now, would be the biggest.

The Commission has also allocated up to 125 million euros in 2024 for specific humanitarian assistance projects in Palestinian territories. As well as dismissing the accused staff, the United Nations launched an investigation into the allegations and also commissioned a review of UNRWA's adherence to neutrality.

In a statement on Jan. 29, the European Commission set out three conditions it expected UNRWA to meet before any further transfer of aid from Brussels. It said it expected an audit into how the agency prevents the involvement of staff in terrorist activities, a strengthening of its internal investigation unit and a review to confirm that no staff took part in the Oct. 7 attacks.

($1 = 0.9259 euros)