The European Commission will pay 50 million euros, equivalent to (54 million dollars), to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), but it will postpone paying 32 million euros while it reviews Israeli allegations involving 12 UNRWA staff members in the October 7 attack on Israel.

The Commission also stated in a Friday announcement that it will increase the total aid provided to Palestinians by 68 million euros this year to help civilians facing "horrific conditions" during the Israel-Hamas war in Gaza.

UNRWA provides essential aid and services to Palestinians trapped in the Gaza war, but it has faced a crisis after Israel claimed in January that 12 of the agency's 13,000 staff in the sector were involved in Hamas's October 7 attack, which Israel says killed 1,200 people and took more than 250 hostages.

UNRWA has suspended all accused staff members but warned that its operations would be "at serious risk" after many donors, including the United States, the United Kingdom, and several European Union countries, suspended funding or said they would not approve new funding until the issue is resolved.

The European Commission, one of UNRWA’s major donors, currently owes 82 million euros to the agency.

However, the Commission said it would pay 60 percent now and the remainder in two installments of 16 million euros each as it addresses the problems arising from the allegations.

Josep Borrell, the European Union's foreign policy chief, said on the social media platform X, "The first transfer is indeed an important step to alleviate the situation in Gaza."

He added, "By continuing to fund UNRWA, the European Union acknowledges that the agency is an indispensable actor."

UNRWA Commissioner-General Philippe Lazzarini said the Commission’s decision will support UNRWA in providing "life-saving and essential services" to Palestinian refugees. However, he added that UNRWA needs 82 million euros, the full amount, as soon as possible.