"The distribution of these funds will, naturally, be handled by the Palestinian Finance Ministry, but the aid will go to assist the populations of both the West Bank and the Gaza Strip," Sergei Kozlov said after a meeting with PNA Prime Minister Salaam Fayad in the West Bank city of Ramallah.
The Gaza Strip has been controlled by the radical Islamic group, Hamas, since June 2007.
Russia has also sent humanitarian aid including food and medicines to the Palestinian territories. The aid shipment is currently in the Jordanian capital, Amman, awaiting delivery.
Russia also granted the Palestinian National Authority $10 million in aid for the same purposes in 2006.