Brussels proposes unprecedented sanctions against Israel amid Gaza crisis

Wednesday 17 September 2025 - 16:30

By: Sahili Aya

Brussels proposes unprecedented sanctions against Israel amid Gaza crisis

On Wednesday, the European Commission proposed a series of unprecedented sanctions against Israel, citing the "untenable" situation in Gaza. These measures, partially new since the onset of the Israel-Hamas war, face a tough road ahead as the 27 EU member states remain divided over their adoption.

The proposed sanctions include measures targeting two far-right Israeli ministers and extremist settlers in the West Bank, along with several Hamas officials responsible for the October 7, 2023 attack on Israel. The European Commission has also reiterated its call for sanctions against these individuals.

"I want to be very clear, the goal is not to punish Israel. The goal is to improve the humanitarian situation in Gaza," emphasized Kaja Kallas, the EU's High Representative for Foreign Affairs.

Israel has urged Brussels not to proceed with the proposed sanctions, with Israeli Foreign Minister Gideon Saar writing to European Commission President Ursula von der Leyen, stating that "pressure through sanctions will not work."

If adopted, the sanctions could place tariffs on Israeli exports, primarily agricultural goods, making them more costly for EU markets.

The European Commission also wants to impose sanctions on far-right Israeli ministers Itamar Ben-Gvir, responsible for national security, and Bezalel Smotrich, in charge of finance. These ministers were previously proposed for sanctions in August 2024, but the proposal failed due to a lack of consensus among the EU member states.

The issue of sanctions against extremist Israeli settlers remains contentious, with Hungary currently being the only EU state to veto such measures. However, commercial sanctions are seen as more achievable, as they require only a qualified majority of member states for approval.

Yet, there is little optimism that the political dynamics within the EU will change dramatically. Several countries, including Germany and Italy, have opposed even limited sanctions in recent weeks. It remains uncertain whether these nations will support the more ambitious commercial measures now on the table.

"I think the political lines are very similar to what they have been until now," Kallas acknowledged.

Last week, Ursula von der Leyen had promised that sanctions would be quickly proposed, emphasizing that "man-made famine can never be used as a weapon of war," referring to the "unacceptable" situation in Gaza.

In response, Brussels has suggested for the first time since the war's onset that it will revoke exemptions or reductions on customs duties for certain Israeli imports into the EU.

In practice, if agreed upon, approximately 37% of Israeli imports to the EU—worth €15.9 billion—would be subjected to tariffs, according to World Trade Organization (WTO) rules. The most affected imports would be agricultural goods, including fruits and fruit-based products, which could face tariffs ranging from 8% to 40%.

The additional cost for Israeli importers would not exceed €227 million annually, according to the Commission’s calculations.

The European Union is Israel’s largest trading partner. The European Commission also decided to suspend its bilateral aid to Israel, amounting to around €20 million, though it will continue its support for Palestinians and Israeli civil society.