Do you think the EBU's actions are related to this sponsorship?
Undoubtedly, yes. Otherwise they would have been more transparent about it / never taken the sponsorship in the first place.
I believe the EBU when they say they're not a political organisation / competition. I also believe that they don't give two shits about human rights violations one of their members is committing because the money is too good. They're not concerned with politics, they're concerned with money.
And that's not a reflection on the EBU, that's a reflection on Europe and European attitudes in general. There might be some outrage here or there and a few protests but ultimately Europeans don't give a shit. Same with the US. Weapons and money are still funneled into Israel and this won't stop. Illegally seized land is still illegally seized and it won't be returned. UN mandates are still ignored and they won't be respected. Palestinian children will still be bombed by Israel on the off chance they might grow up and potentially join Hamas and that won't stop.