The European Union has issued a stern warning to Israel, indicating its readiness to impose sanctions on individuals and entities in third countries that aid or abet the trade of Ukrainian grain stolen by Russia from occupied territories. This warning comes after a Panama-flagged vessel, the Panormitis, allegedly carrying over 6,200 tonnes of wheat and 19,000 tonnes of barley, arrived in Haifa. A European Commission spokesperson confirmed that the EU had noted reports of a Russian "shadow fleet" vessel unloading stolen Ukrainian grain at Haifa port, despite previous contacts between Ukraine and Israeli authorities. The EU unequivocally condemns actions that finance Russia's illegal war effort and circumvent EU sanctions, affirming its readiness to target such actions by listing individuals and entities in third countries if necessary. The EU has directly approached the Israeli Ministry of Foreign Affairs on this issue.

Ukraine has vehemently protested these shipments, escalating diplomatic tensions with Israel. President Volodymyr Zelenskyy criticized the trade as "illegitimate business," stating that in any normal country, purchasing stolen goods entails legal liability. Kyiv had previously urged Brussels to utilize all available instruments, including Frontex, to disrupt Moscow's global sales of plundered grain. Zelenskyy's government is preparing "relevant sanctions," in coordination with Europeans, against those profiting from this criminal scheme. Diplomatic channels, however, have often proven ineffective in past incidents. Ukraine's Foreign Minister Andrii Sybiha publicly called on Israel to reject the Panormitis's cargo, and Ukraine summoned Israeli Ambassador Michael Brodsky to urge action. Ukraine maintains it has taken all necessary diplomatic steps and that Israeli authorities cannot be unaware of the origin of such shipments, especially given that Russian bulk carriers are reportedly loaded with grain from occupied Ukrainian territories, transferred to shadow fleet vessels, and then depart from Russian ports. Kyiv estimates that at least 15 million tonnes of Ukrainian grain have been stolen by Russia since the full-scale invasion in 2022.

Israel's Foreign Minister Gideon Sa'ar responded to the accusations by stating on Monday that "evidence substantiating the allegations have yet to be provided" and that Kyiv had not "even submit a request for legal assistance before turning to the media and social networks." He confirmed that the Panormitis would be "examined" and that national authorities would "act in accordance with the law." However, an investigation by Israeli news outlet Haaretz reportedly found that at least four shipments of stolen Ukrainian grain had been unloaded in Israel earlier this year. A notable incident involved the Russian bulk carrier Abinsk, which delivered nearly 44,000 tonnes of alleged stolen Ukrainian wheat to Israel a few weeks prior, despite Kyiv having informed Israeli officials in advance on March 23 about the cargo's suspicious origin and receiving "assurances regarding an appropriate response." Yet, the Abinsk was allowed to unload at the port of Haifa between April 12-14.

The EU's stance on this issue is part of a broader, increasingly fraught relationship with Israel. The bloc already agreed in 2024 to impose tariffs on grain products from Russia and Belarus to combat the trade of stolen merchandise, and several Russian individuals have been blacklisted over the seizure of Ukrainian grain. However, implementing EU-level sanctions, which require unanimity among the 27 member states, has been challenging in cases involving Israel due to sharp divisions among member states. Recent Israeli actions, such as an offensive in Lebanon (currently under a fragile ceasefire) and a proposed law for the death penalty targeting Palestinians, have intensified debates about suspending the EU-Israel Association Agreement, particularly concerning Article 2, which mandates binding obligations to respect human rights. An internal review by the European External Action Service (EEAS) last year also concluded that Israel had breached Article 2 through systematic violations of international law in Gaza. Spain, Ireland, and Slovenia are among those calling for punitive action, while Germany and Italy remain on the fence, whose support would be key for the qualified majority needed to partially suspend the pact.