United Nations agencies’ monthly cash transfers to Gaza residents are inadvertently strengthening the Hamas terrorist organization, as the group and affiliated traders continue to control the money flow to the enclave, an expert on Hamas’ financial and economic operations said.

“Hamas exploits its role as the de facto ruler of Gaza to extract financial gains from aid money sent by U.N. organizations to civilians via apps still operating in the region,” Eyal Ofer told Fox News Digital.

“The aid system is being manipulated by Hamas and affiliated traders. Hamas does this largely behind the scenes, leveraging their control over large merchants, crime families, and using cash to establish a shadow banking system within Gaza.”

HOW ISRAEL’S WAR AGAINST HAMAS TERRORISTS WILL BE DIFFERENT UNDER TRUMP

Each month, international organizations send significant sums into Gaza’s economy. The U.N.’s World Food Programme (WFP) transfers approximately $18.43 million, reaching 82,636 families, with each family receiving an average of $209, according to open-source data. UNICEF’s monthly assistance averages $5 million, helping to reach at least 20,000 families every month. 

“I go to the market and meet people whose job is to provide cash in exchange for a fee,” Gaza resident Shahab Yousef told Israel’s news agency TPS-IL. “The fee is 20–30%. If I transfer 1,000 shekels [$271] I get back 700 [$190],” he said. “For big purchases, I pay digitally. But at the market, I need cash, and I lose 30 percent every time.”

Another Gaza resident, Nidal Qawasmeh, expressed similar frustration to TPS-IL. “These people are charging 30 percent just to give you cash. I just want to take care of my family, but everything costs me more because of this. Prices are insane.”

The specific amount received per family every month is around $270 (or 1,000 New Israeli Shekels), which was calculated as 80% of the Survival Minimum Expenditure Basket, UNICEF told Fox News Digital. Smaller organizations like UNFPA and others also contribute, bringing the total to about $39.66 million per month, reaching 60% of Gaza’s households, according to open-source data.

A man holds a wad of Israeli shekels in Gaza. (Majdi Fathi/TPS)

Despite the scale of direct financial aid, which reaches over half of the enclave’s population, Gaza’s severe food insecurity and high inflation (91% and 118%, respectively, as of January 2024) underscore its importance. However, the way this money circulates within Gaza is far more complex. “Hamas controls much of the cash that enters Gaza through various channels,” Ofer told Fox News Digital, “People who receive money via mobile apps must convert it into cash to use in local markets, but this involves hefty fees, with many money changers tied to Hamas or its allies.”

TPS-IL reported that Israel’s Foreign Minister Gideon Sa’ar recently warned that Hamas’s economic strength in Gaza relies on billions of shekels in cash, paid as salaries and quickly reclaimed through taxes on merchants. In a letter to Bank of Israel Governor Prof. Amir Yaron, Sa’ar urged the cancelation of the circulation of 200-shekel bills previously introduced into Gaza, saying that experts believe the move would severely damage Hamas’s financial network. The Bank of Israel rejected the proposal, citing technical reasons and claiming that implementation was not feasible.

Ofer’s research found that the fees can range from 20% to 35%, meaning recipients lose a significant portion of their aid just to access it. “In videos from Gaza, you can see traders refusing to accept app funds and forcing customers to convert them into cash, knowing they will lose at least 20% in the process,” he said.

Peter Gallo, an international lawyer and former Office of Internal Oversight Services (OIOS) investigator at the U.N., told Fox News Digital, “If an investigator in Israel can figure it out, the aid agencies either knew or should have known. Twenty to thirty percent is just ridiculous. That’s extortion. It’s what some have politely described as a ‘revolutionary tax.’ In fairness, the aid agencies might argue they had no alternative, It is the cost of doing business, but it would have been better if they were honest about it from the start.”

HAMAS TERROR GROUP REPORTEDLY BUCKLING UNDER FINANCIAL STRAIN AMID ISRAELI MILITARY GAINS AND GROWING UNREST

Palestinians shop for food and clothes at the local bazaar as daily life continues in the shadow of war in Jabalia, Gaza, on January 15, 2024. (Photo by Mahmoud Shalha/Anadolu via Getty Images) (Photo by Mahmoud Shalha/Anadolu via Getty Images)

A spokesperson for UNICEF told Fox News Digital, “UNICEF is aware of the cash liquidity crisis in Gaza and the continuous shortage of hard cash, which is a direct consequence of the banking system’s inability to function amid the ongoing conflict.

“Since May 2024, UNICEF has introduced fully digital cash payments via e-wallets, which do not require hard cash at any point. By using e-wallets, recipients of humanitarian digital cash transfers can purchase goods such as food, hygiene items and medicine without ever handling physical money,” the spokesperson said.

“The use of digital e-wallets can be accessed through an app and works on the most basic smartphones. When implemented, these digital cash payments via e-wallets eliminate the need for cash conversion and, consequently, the payment of any fees. The UNICEF humanitarian digital cash program adheres to the highest standards of neutrality and impartiality. No external party, actor, or agency—not even the beneficiaries themselves—has any role or influence in the design or implementation of the program, including the composition of the beneficiary list, payment schedule, frequency and amounts.”

World Food Programme (WFP) aid at the Erez west crossing on the Israel-Gaza border. (IDF spokesman)

The spokesperson claimed: “More than 1.8 million people—close to the entire population of Gaza—are grappling with extreme food insecurity, with at least half of them being children. . . . Acute malnutrition among children is rising at alarming rates. The UNICEF humanitarian cash transfer program is, simply put, keeping children alive in the midst of a war not of their making by providing them with access to essential items for their survival. UNICEF’s monthly budget for humanitarian cash transfers in Gaza averages USD 5 million to support approximately 20,000 families. We estimate that these parameters are too small to significantly impact the local economy.”

The World Food Programme didn’t respond to multiple requests for comment.

In a statement to Fox News Digital, Israel’s Ambassador to the United Nations, Danny Danon, said, “This is yet another example of Hamas showing a complete disregard for the people of Gaza – and exploiting systems and infrastructure to sustain their murderous terror machine.”

“Turning a blind eye is not acceptable. The U.N. Security Council has been addressing terrorist financing since 2001, yet aid agencies continue to ignore the fact that Hamas is making a profit off this money flow, despite international efforts to stop terrorist financing,” Gallo said.

New Greenlandic Prime Minister Jens-Frederik Nielsen stated on Sunday that US comments regarding the mineral-rich Arctic island had been disrespectful, emphasising that Greenland “will never, ever be a piece of property that can be bought by just anyone.”

His comments came after a meeting with Danish Prime Minister Mette Frederiksen at her official residence on Sunday, on the second day of a three-day official visit.

Nielsen’s remarks were in response to US President Donald Trump’s repeated state interest in taking control of the strategically important territory.

During the press conference, Nielsen said “the talk from the United States have not been respectful.”

He continued, “the words used have not been respectful. That’s why we need in this situation, we need to stand together.”

Greenlandic political parties, which have been advocating for eventual independence from Denmark for years, recently formed a broad-based coalition government in response to Trump’s ambitions regarding the territory.

The Greenlandic government stated that Nielsen’s three-day visit, which began on Saturday, was aimed at fostering future cooperation between the two nations.

“Denmark has the will to invest in Greenlandic society, and we don’t just have that for historical reasons. We also have that because we are part of (the Danish) commonwealth with each other,” said Frederiksen.

“We of course have a will to also continue investing in Greenlandic society,” she continued.

Nielsen is scheduled to meet King Frederik X on Monday, before returning to Greenland with Frederiksen for a royal visit to the island.

When asked whether a meeting between them and Trump was in the works, Frederiksen responded, “We always want to meet with the American president. Of course we want to. But I think we have been very, very clear in what is the (Danish commonwealth’s) approach to all parts of the Kingdom of Denmark.”

Greenland is a self-governing territory of Denmark.

Video editor • Lucy Davalou

KYIV, Ukraine (AP) — A peace proposal by the Trump administration that includes recognizing Russian authority over Crimea shocked Ukrainian officials, who say they will not accept any formal surrender of the peninsula, even though they expect to concede the territory to the Kremlin, at least temporarily.

Giving up the land that was illegally annexed by Russia in 2014 is also politically and legally impossible, according to experts. It would require a change to the Ukrainian constitution and a nationwide vote, and it could be considered treason. Lawmakers and the public are firmly opposed to the idea.

“It doesn’t mean anything,” said Oleksandr Merezkho, a lawmaker with Ukrainian President Volodymyr Zelenskyy’s party. “We will never recognize Crimea as part of Russia.”

Unlike a territorial concession, a formal surrender would permanently relinquish Crimea and abandon the hope that Ukraine could regain it in the future.

The Ukrainian public largely understands that land must be ceded as part of any armistice because there is no way to retake it militarily. Polls indicate a rising percentage of the population accepts such a trade-off.

But much of the public messaging about land concessions has suggested that they are not necessarily permanent, as when Kyiv Mayor Vitalii Klitschko told the BBC recently that Ukraine may need to temporarily give up land as part of a peace deal.

Saying otherwise would effectively admit defeat — a deeply unpopular move, especially for Ukrainians living under Russian occupation who hope to be liberated and reunited with their families one day. It also would call into question the sacrifices made by tens of thousands of Ukrainian service members who have been killed or wounded.

U.S. President Donald Trump underscored the Crimea proposal in an interview published Friday in Time magazine: “Crimea will stay with Russia. Zelenskyy understands that, and everybody understands that it’s been with them for a long time.”

His comments offered the latest example of the U.S. leader pressuring Ukraine to make concessions to end the war while it remains under siege. Trump has also accused Zelenskyy of prolonging the war by resisting negotiations with Russian President Vladimir Putin.

Crimea, a strategic peninsula along the Black Sea in southern Ukraine, was seized by Russia years before the full-scale invasion that began in 2022. The Russian takeover followed large protests that ousted former Ukrainian President Viktor Yanukovych, who had refused to sign an association agreement with the European Union.

In the lead-up to peace talks, Ukrainian officials told The Associated Press for months that they expect Crimea and other Ukrainian territory controlled by Russia to be among Kyiv’s concessions in the event of any deal. But Zelenskyy has said on multiple occasions that formally surrendering the land has always been a red line.

Elements of Trump’s peace proposal would see the U.S. formally recognizing Crimea as Russian and de facto accepting Moscow’s rule over occupied Ukrainian territories, according to a senior European official who spoke on condition of anonymity to discuss sensitive diplomatic discussions.

Whether the U.S. formally recognizes Crimea as Russian is out of Zelenskyy’s hands. But many obstacles prevent the Ukrainian president from doing so, even under immense pressure. He cannot unilaterally sign any such proposal, and he could be reprimanded by future governments for even attempting it, experts said.

Ukraine began to accept that it would not regain its lost territories after the failure of the country’s 2023 summer counteroffensive. From then on, the Ukrainian military concentrated on defending the territory it still held.

In return for territorial concessions, Ukraine wants robust security guarantees that ideally would include NATO membership or concrete plans to arm and train its forces against any future Russian invasion with the pledged support of allies. One scenario envisions European boots on the ground, which Russia rejects.

Zelenskyy has said negotiations over occupied Ukrainian territory will be drawn out and will not likely occur until a ceasefire is in place. In late March, he told reporters after a call with Trump that the U.S. president “clearly understands that legally we will not recognize any territories.”

He said giving up territory would be “the most difficult question” and “a big challenge for us.”

Formal recognition of Crimea would also amount to political suicide for Zelenskyy. It could expose him to legal action in the future, said Tymofiy Mylovanov, president of the Kyiv School of Economics and a former economics minister.

Signing a potentially unconstitutional document could be interpreted as high treason, Mylovanov said.

The Ukrainian government cannot act either. It has no constitutional means to accept a violation of its territorial integrity, and altering the territorial makeup of the country requires a nationwide referendum.

If Ukrainian lawmakers were even to entertain the idea of surrendering Crimea, it would trigger a long, drawn-out legal debate.

“That’s why Russia is pushing it, because they know it’s impossible to achieve,” Mylovanov said.

“Anything related to constitutional change gives so much policy and public communication space to Russia,” he added. “This is all they want.”

Soldiers on the front line say they will never stop fighting, no matter what the political leadership decides.

“We lost our best guys in this war,” said Oleksandr, a soldier in the Donetsk region, who spoke on the condition that only his first name be used in line with military protocols. “We won’t stop until all Ukrainian lands are free.”

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Associated Press Writer Hanna Arhirova contributed to this report.