Israel's public broadcaster is a long time member of the European Broadcasting Union, which has nothing to do with EU, and honestly not all that much to do with Europe either. EBU organizes Eurovision. Why Israel's public broadcaster wanted to be part of EBU I don't know, cultural identification with Europe I guess? You'd have to ask them.
But either way that's not the scandal. The scandal is that Russia's broadcaster got kicked out for Russia doing bad things (fair enough) but Israel's was kept in despite their government doing even worse things.