Iran is donating $50 million to the cash-strapped Palestinian Authority, to fill gaps left by Western aid cuts, Foreign Minister Manouchehr Mottaki said today.
The United States and the European Union have cut off aid to the Hamas-controlled Palestinian government while Israel has frozen the transfer of approximately $50 million in tax and customs receipts. Iran's contribution would make up that shortfall.
"I am honoured to announce that Iran has donated $50 million to help Palestinian nation," Mr Mottaki said in a televised speech to a conference in Tehran on the Palestinian issue. He did not elaborate on how or when the aid would reach the Palestinians.
He said the aid was Iran's duty as a friend of the Palestinians.
Since its 1979 Islamic revolution, Iran has been at odds with the United States and has refused to recognise Israel.
Washington and the European Union froze aid to the Hamas-led government because the Islamist group did not recognise Israel, renounce violence or abide by interim peace agreements.
Palestinians are dependent on foreign aid totalling more than $1 billion a year.
Mr Mottaki called on Muslims around the world to support the Palestinians. "The Islamic world should help the new Palestinian government to overcome its current problems," he said.