Israel halts PA funds to Norway after Palestinian state recognition

Jerusalem axes transfer of tax revenue intended for Gaza to Oslo and seeks new custodian country; talks underway with Switzerland to take over, with Minister Ron Dermer already dispatched for discussions

Israel announced Wednesday that it will terminate the escrow arrangement used to transfer levies collected from the Palestinian Authority for Gaza to Norway's custody.
This decision, recently made by the Cabinet and kept confidential, is a retaliatory measure against Norway's recent recognition of an independent Palestinian state and inflammatory remarks by Norwegian Foreign Minister Espen Barth Eide against Israel.
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אבו מאזן, בנימין נתניהו
אבו מאזן, בנימין נתניהו
(Photo: Reuters, Shutterstock)
On Tuesday, Norway submitted a written opinion to the International Criminal Court (ICC) stating that there are no impediments to issuing arrest warrants for Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant and that the Oslo Accords are irrelevant to determining the ICC's jurisdiction. As the guarantor of the Oslo Accords, Norway holds significant sway with the ICC.
Ynet has learned that Israel is exploring, through the United States, an agreement with another country to replace Norway. The funds in question are those deducted from the Palestinian Authority specifically in relation to Gaza, not the West Bank. Israel is exerting significant effort to persuade Switzerland to take over the escrow role. Strategic Affairs Minister Ron Dermer recently visited Switzerland and held discussions there.
According to sources familiar with the matter, Dermer discussed the escrow arrangement with the Swiss. However, Dermer's office denied these claims, saying, "The minister indeed visited Switzerland, but we cannot comment on the nature of the visit. The minister did not meet with Swiss officials regarding the mentioned issue. The Americans are the ones exploring this initiative."
Additionally, the Foreign Ministry is drafting further measures against Norway. Israeli Ambassador to Norway Avi Nir was recalled for consultations following Oslo's recognition of Palestinian statehood. The Israeli embassy in Oslo remains open, managed by the chargé d'affaires. Norway, which maintains an ambassador in Israel, is currently viewed in Jerusalem as the most hostile European country toward Israel.
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