by Eli Leon and Hezi Sternlicht
According to Iranian report, a Swiss court has ordered Israel to pay $1.1 billion in compensation to Iran over 1968 joint oil deal • Finance Ministry: By law we are prohibited from transferring money to enemies, including the National Iranian Oil Company.
An Eilat Ashkelon Pipeline
Company rig in Eilat
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Photo credit: Yehuda Ben-Yatah  |
The Eilat Ashkelon Pipeline Company has
reportedly been ordered to pay $1.1 billion in compensation to Iran by a
Swiss court, according to Iran's official IRNA news agency.
Though efforts to verify the report were
unsuccessful, the Finance Ministry released a statement, saying,
"Without delving into the details of the issue, we will note that, in
accordance with the Trading with the Enemy Act, we are prohibited from
transferring money to the enemy, including the National Iranian Oil
Company."
The ruling follows a long legal conflict
between Israel and Iran over the profits from a joint oil pipeline
venture dating from 1968, before Iran's Islamic Revolution and when it
was still an Israeli ally. The goal had been to sell Iranian oil to
Europe via Israel.
According to IRNA, which attributed the report
to "an informed source" at the Presidential Office's Legal Affairs
Center, the ruling deals with a delivery of 14.75 million cubic meters
of crude oil from the National Iranian Oil Company to Israel's
Trans-Asiatic Oil Ltd., affiliated with the Eilat Ashkelon Pipeline
Company. The delivery was worth $450 million.
The Iranians claimed Israel never paid for the shipment,
leaving the issue unresolved after the 1979 Islamic Revolution, when
contracts between the two countries were canceled. The difference
between the original amount and the amount reportedly ordered in
compensation is due to interest and $7 million in legal fees.
Eli Leon and Hezi Sternlicht
Source: http://www.israelhayom.com/site/newsletter_article.php?id=25655
Copyright - Original materials copyright (c) by the authors.
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