Ammon News - AMMONNEWS - Israeli cabinet agreed yesterday to impose sanctions on the Palestinian Authority (PA) because of the formation of a national unity government with Hamas, the Jerusalem Post reported today , Middle East Monitor reported.

The newspaper said: "The ministers agreed to completely halt negotiations with the Palestinian Authority as long as it remains united with terror organisation Hamas and to lower the amount of money transferred to the PA."

It also said: "The Israeli ministers also reconfirmed the decision to deny three Palestinian ministers from Gaza entry into Ramallah."

Israel collects around $100 million in taxes on behalf of the PA, which does not control the borders of the Palestinian territories.

The Palestinian national unity government is due to be sworn in this afternoon. It consists of 16 ministers headed by the Fatah Prime Minister in Ramallah Rami Hamdallah.

Earlier today, Hamas officials said that they would not accept a government without the Prisoners' Ministry, which PA President Mahmoud Abbas insisted on dissolving. The government is scheduled to be sworn in at 1pm, but the disputes were expected to postpone it.

After a last minute agreement the government was announced. Abbas said: "We declare the end of division that caused catastrophic harm to our cause."