"The Office of the UNHCR hails the Russian government's initiative to allocate $2 million for the implementation of its programs in Europe in 2005," the spokesman said.
"The largest part of the funds, $1.65 million, will be used to help refugees and internally displaced people in Serbia and Montenegro, including Kosovo," the source said.
The remainder of the funds will go to support the agency's activities in line with the 1951 Geneva Refugees Convention.
Russia's previous contribution, $2 million, was used for the organization's programs in Africa.
The Office of the UNHCR is one of the world's major humanitarian agencies. In more than five decades, the agency has aided an estimated 50 million people. It is currently supported by a staff of about 6,540 people in 116 countries, helping 19.2 million people. The agency's annual budget is approximately $1 billion.