Israel will withold Palestinian funds in the form of tax revenues from the Palestinian President Mahmoud Abbas, in response to the state's UN observer status bid.
Israel's foreign minister, Avigdor Lieberman, said:
"The Palestinians can forget about getting even one cent in the coming four months, and in four months' time we will decide how to proceed,"
"Israel is not prepared to accept unilateral steps by the Palestinian side, and anyone who thinks they will achieve concessions and gains this way is wrong,"
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