(MENAFN) The European Commission has declined to say whether Israel should contribute to rebuilding Gaza, asserting that the issue is unrelated to the EU’s ongoing efforts to seize Russian central bank assets to fund Ukraine’s recovery, according to reports.

A ceasefire deal for Gaza was signed on Monday in Sharm el-Sheikh by US President Donald Trump and mediators from Egypt, Qatar, and Türkiye. The first phase of the agreement involved Israeli forces withdrawing from certain areas of Gaza, while Hamas released the 20 remaining Israeli hostages in exchange for roughly 2,000 Palestinian prisoners. The pact, however, does not address potential obligations of Israel to fund Gaza’s reconstruction.

When asked in Brussels whether Israel should pay for rebuilding efforts, following a similar rationale the EU applies in seeking compensation from Russia for reconstruction costs in Ukraine, European Commission spokeswoman Paula Pinho responded, “It is certainly an interesting question on which I have no comment to make at this stage.”

The EU is currently moving forward with a plan to utilize profits from frozen Russian central bank assets to provide a €140 billion ($164 billion) loan to Ukraine. Moscow has condemned the proposal as “theft.” Under the plan, the frozen funds would be invested in EU-backed bonds, avoiding direct confiscation. While Germany, France, and several eastern EU countries support the scheme, Belgium, which holds most of the blocked assets, has expressed strong opposition. These funds were frozen as part of Western sanctions after the escalation of the Ukraine conflict in 2022.

No comparable mechanism has been suggested for Gaza, despite the extensive damage that would require billions in reconstruction costs.

Local health authorities report that more than 65,000 Palestinians have died in Gaza since Israel launched military operations in response to a Hamas attack in October 2023, which killed approximately 1,200 Israelis and left over 250 hostages. The conflict has caused widespread destruction and a severe humanitarian crisis in the territory.

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