Israel to lose over € 164 billion due to EU sanctions
Emmanuel Ukudolo I Wednesday, September 17, 2025
BRUSSELS, Belgium – The European Union, EU has doubled up in its efforts to stop the genocide in Gaza by imposing far reaching sanctions on Israel, extremist ministers, the rampaging settlers and ten members of Hamas’ Political bureau.
The sanctions are part of the proposal by EU High Representatives for Foreign Affairs and Security Policy/Vice President of the European Commission, Kaja Kallas and Commissioner for the Mediterranean, Dubravka Suica.
Once adopted, the EU-Israel Association Council will be notified about the suspension, which will take effect 30 days after the notification to the EU Council.
The sanctions for adoption by the EU council include suspension of certain trade-related provisions of the Association Agreement between the EU and Israel. The Commission is also putting on hold its yearly bilateral support to Israel, with the exception of support to civil society and Yad Vashem.
“Concretely, this affects future yearly allocations between 2025 and 2027, as well as ongoing institutional cooperation projects with Israel and projects funded under the Regional EU-Israel cooperation facility”, the EU said in a statement.
The EU is imposing the sanctions after review of Israel’s compliance with Article 2 of the Agreement, which found that actions taken by the Israeli government represent a breach of essential elements relating to respect for human rights and democratic principles. Specifically, this breach refers to the rapidly deteriorating humanitarian situation in Gaza following the military intervention of Israel, the blockade of humanitarian aid, the intensification of military operations and the decision of the Israeli authorities to advance the settlement plan in the so-called E1 area of the West Bank, which further undermines the two-state solution.
In specific terms, the package consists of 4 draft legal acts with 9 listing proposals against the ministers and the settlers (under the EU Global Human Rights Sanctions Regime), as well as a reinforced package of listings against 10 members of the Hamas politburo, based on a new listing criterion under the Hamas Sanctions Regime.
The Council now needs to approve the decision by unanimity.
Impact of the sanctions
The EU is Israel’s biggest trading partner, accounting for 32% of Israel’s total trade in goods with the world in 2024. Israel is the EU’s 31st largest trading partner.
Total trade in goods between the EU and Israel in 2024 stands at €42.6 billion, while EU imports from Israel were worth €15.9 billion, led by as follows: Machinery and transport equipment (€7 billion, 43.9%) chemicals (€2.9 billion, 18%), and other manufactured goods (€1.9 billion, 12.1%).
The EU’s exports to Israel amounted to €26.7 billion and were dominated by machinery and transport equipment (€11.5 billion, 43%), chemicals (€4.8 billion, 18%), and other manufactured goods (€3.1 billion, 11.7%).
Trade in services between the EU and Israel amounted to €25.6 billion in 2023 (the EU imports €10.5 billion, and exports €15.1 billion).
EU’s bilateral support to Israel
The EU’s financial support to Israel is covered by the Neighbourhood, Development and International Cooperation Instrument (NDICI) Global Europe (NDICI-GE) for the period 2021 to 2027.
In this context, Israel was set to receive an average of €6 million per year under the current MFF between 2025 and 2027. In addition, the EU will equally put on hold the institutional cooperation projects, including twinning programmes and projects under the Regional EU-Israel cooperation facility benefitting Israel in the region in the context of the Abraham Accords. The amount to be put on hold is approximately €14 million.
Sanctions against violent settlers
Under the EU Global Human Rights Sanctions Regime, the Council has listed nine individuals and five entities linked to violent extremism in the West Bank and East Jerusalem, as well as the blocking of humanitarian aid into Gaza.
On 7 December 2020, the Council established a Global Human Rights Sanctions Regime, which applies to acts such as genocide, crimes against humanity and other serious human rights violations or abuses (e.g. torture, slavery, extrajudicial killings, arbitrary arrests or detentions).
The EU Global Human Rights Sanctions Regime underscores the EU’s determination to enhance its role in addressing serious human rights violations and abuses worldwide. Achieving the effective enjoyment of human rights by everyone is a strategic goal of the Union.
In its conclusions of 27 June 2024, the European Council reiterates its strongest condemnation of the brutal terrorist attacks conducted by Hamas and other terrorist groups against Israel on 7 October 2023. The European Council strongly condemned the ongoing extremist settler violence in the West Bank, including East Jerusalem, and invited the Council to take work forward on further restrictive measures against extremist settlers.
The European Council also called for safe access to the holy sites and for the Status Quo to be upheld. Lastly, the European Council condemned the Israeli government’s decisions to further expand illegal settlements across the occupied West Bank and urged Israel to reverse these decisions.
