Israel softens criticism of Russia on Hamas talks

Israel's interim Prime Minister Ehud Olmert met top officials to review policy towards Russia after it invited Hamas for March 3 talks, with Russian Foreign Minister Sergei Lavrov quoted by Russian news agencies as saying he will take part.

Russia's move challenged Israel's U.S.-backed efforts to isolate Hamas unless it recognises the Jewish state, but Olmert toned down Israel's earlier criticism of Moscow over the talks.

He said in a statement after his policy review discussions that Israel's ties with Russia "are important and ways must be found to improve them and tighten the understanding".

Israel has recently received "positive messages" from Russia's President Vladimir Putin, who would not act against Israel's interests, Olmert added.

Previously, Israeli officials have warned that the Moscow meeting threatened peacemaking prospects and accused Russia of "stabbing Israel in the back".

Russia has said it would tell Hamas, whose charter calls for Israel's destruction, that it must commit to seeking peace with Israel to win international acceptance.

In a bid to avoid appearances that Russia was mediating between Israel and Hamas, Israeli Foreign Minister Tzipi Livni has postponed plans to visit Russia before a March 28 Israeli election, Israel's Channel 2 television said.

A ministry spokesman said no date for a trip had ever been finalised.

Israel has threatened to sever ties with a Palestinian government headed by Hamas and has already frozen a handover of tax revenues after Hamas was sworn into parliament and asked to head a government after its surprise win of the Jan. 25 poll.

Washington and the European Union have also threatened to cut all but humanitarian aid unless Hamas recognises the Jewish state, renounces violence and accepts past peace deals.

A senior Hamas official said that Iran has agreed to provide the Palestinians with enough money to make up for any cuts in foreign aid to the cash-strapped Palestinian Authority.

"I do not have information about numbers but Iranian officials have announced they would be ready to fulfil all financial needs of the Palestinian Authority in case of aid cuts," the official, Khalil Abu Laila, told Reuters in Gaza.

Palestinians are dependent on foreign aid totalling more than $1 billion a year.

The European Union announced a special aid package of 120 million euros ($142 million) on Monday to help stave off an imminent financial collapse of the Palestinian Authority.

In a report to be released on Tuesday, the U.N. Office for the Coordination of Humanitarian Affairs said there was a higher risk of crime and kidnappings if the Palestinian Authority runs out of money to pay its 73,000 security personnel.

The U.N. report also said that a tightening of Israeli security measures since Hamas won the election has significantly worsened conditions for Palestinians.

Israel, which has long viewed the United Nations as pro-Palestinian, said the increase in restrictions was due to an "enhanced terrorist threat".

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