Israel Refuses To Pay Old Oil Debt To Iran

Tyler Durden's picture

Submitted by Andy Tully via OilPrice.com,

Israel is refusing to comply with an order by a Swiss court that it pay $1.1 billion that it has owed to Tehran since before Iran’s 1979 Islamic revolution for its share of a jointly owned oil pipeline.

“Without referring to the matter at hand, we’ll note that according to the Trading with the Enemy Act it is forbidden to transfer money to the enemy, including the Iranian national oil company,” the Israeli Finance Ministry said in a statement.

The complex dispute stems from 1968, when Shah Reza Pahlavi ruled Iran. The Eilat Ashkelon Pipeline Co. (EAPC) was created as a joint venture between an Israeli company, Trans-Asiatic Oil Ltd. (TAO), which is registered in Panama, and the National Iranian Oil Co. to supply Iranian oil to Europe.

At that time, the oil was taken by ship to the Israeli port of Eilat at the northern tip of the Gulf of Aqaba. From there it moved through a network of pipelines to Ashkelon on Israel’s Mediterranean coast, then to the northern Israeli port of Haifa and on to European customers.

The National Iranian Oil Co. provided 14.75 million cubic meters of crude oil through the EAPC, earning $450 million for TAO.

With relations between the two countries now severed, EAPC now is the sole operator of more than 450 miles of the EAPC pipelines in Israel, according to the company’s website.

In its ruling, the Swiss court said the Israeli company hadn’t paid its share owed to Iran before its 1979 Islamic revolution for buying and shipping that country’s oil through an Israeli port, according to Iran’s Islamic Republic News Agency (IRNA), quoting an “informed source” at Iran’s Presidential Center for Legal Affairs.

Before Iran’s revolution, it and Israel were allied against the Sunni Muslim Arab nations in the region, who bridled against both the presence of a Jewish state in the Middle East and against Iran, a country that predominantly adheres to rival Shi’a Islam.

Now Iran and Israel are sworn enemies, with Tehran providing billions of dollars in military and financial aid to groups aligned against Israel, including Hezbollah in Lebanon and Hamas in Gaza.

After the revolution, when Iran made clear its enmity to the Jewish state, Israel expropriated all Iran’s assets in its territory. That included effectively nationalizing the pipeline.

Iran responded with three international arbitration suits in both Swiss and French courts not only for what it said were billions owed for Israel’s operation of the pipeline, but also for other expropriated assets.

The IRNA report says the Swiss court’s ruling involves only Iran’s delivery of the 14.5 million cubic meters of crude as part of the old joint venture.

At first, in 1989, the court ordered TAO to pay $500 million, which included interest, to Fimarco Anstalt, a subsidiary of the National Iranian Oil Co. registered in Lichtenstein before the 1979 revolution.

That ruling was put on hold, however, because of a dispute over issues including the amount of interest owed. IRNA reports that the latest ruling brings an end to that case. According to the court, Israel's liability includes not only the $1.1 billion for its share in EAPC, but an additional $7 million to cover Iran’s legal fees.

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HonkyShogun's picture
HonkyShogun (not verified) May 25, 2015 12:32 PM

Oh this one is too easy.

junction's picture

I wonder how much of Trans-Asiatic Oil Ltd. Benjamin Netanyahu owns.  Normally, the next legal step is that the funds be put in an escrow account while the fund transfer to Iran is blocked by international law.  Israel will never pay this judgment. Israel is now ruled by goniffs no different than the Nazi looters of 75 years ago.  

AIIB's picture
AIIB (not verified) junction May 25, 2015 1:20 PM

Oh FFS!

 

Sincerely, f_s

Bastiat's picture

I don't suppose this would having anything to do with their eagerness to bomb the hell out of Iran (or have the US do it).  Actually probably not - if they had to pay they'd just get the money from the US one way or another.

Anusocracy's picture

Greece should declare the IMF, the World Bank, and the EU its enemies

Bumpo's picture

I guess no one needs to pay back any Jewish-run banks either, then

Troll Magnet's picture

So...we shouldn't bother asking Israel for 9-11 damages?

RafterManFMJ's picture

I see no valid reason the tax serfs of the US cannot make the payment for Israel.

Thirtyseven's picture

I have decided to unilaterally declare all forms of kikery to be crimes against the rest of humanity.  So be it written. //End Referendum.

exartizo's picture

Preface: not a fan of Iran or Israel.

“Without referring to the matter at hand, we’ll note that according to the Trading with the Enemy Act it is forbidden to transfer money to the enemy, including the Iranian national oil company,” the Israeli Finance Ministry said in a statement

hey dumbass Israeli Finance Minister... you weren't Enemies when Israel stole the money from the Iranians.

It's honest enough to want the money back, with interest.

HenryHall's picture

The Iranians knew they were dealing with dishonest people.

It's not like it should be any surprise to them.

sun tzu's picture

Try getting money out of  a money changer

Charming Anarchist's picture

Amazing, is it not?  The only time He ever was violent.  That alone is sufficient proof for me that He is divine.  You can not make that shit up. 

XqWretch's picture

"Oh this one is too easy."

 

Certainly living up to the "cheap jew" stereotype lol

HonkyShogun's picture
HonkyShogun (not verified) XqWretch May 25, 2015 1:42 PM

It's a fine stereotype. Russians and Scots are cheap too but they don't go replacing my civilization with ooking shitheads and glorifying every last degenerate angle possible. Thus Russians and Scots aren't universally reviled throughout history.

Kirk2NCC1701's picture

Yes, but neither of them has an officially perpetuated cosmological/world-view* that proclaims them as Kings of the World, and everyone else is to kiss their ass and do their bidding.

* I.e., no Deity-backed decree, no Guy-in-the-Sky (mythological or extra-terrestrial) Big Shot of the Galaxy backing.  It's all self-proclaimed claim to Chosen or Specual Status and involves the "Jedi Mind Trick", which clearly works amazingly well on Sheeple.  Many of whom are right here on ZH.

Urban Redneck's picture

The entire point of arbitration is that the parties to a contract agree in advance to settle any disputes in an agreed upon fashion, the legal strategy of the dishonorable thieving shysters in Israel has been to avoid doing that which they obligated themselves to do under the contract, i.e. NAME THEIR OWN ARBITRATOR to the panel so that an proceeding could commence, which they were destined to lose, and now have.  It's not about being "cheap" - it's about being a dishonorable and untrustworthy partner, and the State of Israel is doing Jews no favor by feeding into that stereotype.  They need to pay.  Neither the US nor Israeli trading with enemies acts (statutory laws) actually prevents the sovereign from fulfilling its treaty obligations. 

http://www.swlegal.ch/getdoc/.../2013_Nathalie-Voser_Anya-George_Swiss-Supreme-(1).aspx

ThirdWorldDude's picture

A Greek and a Jew walk into a bar...

 

'Stereotype' is a politically correct expression for folklore, which in itself is oral tradition

Hedge accordingly.

Ward cleaver's picture

Yeah, this story has to be a plant to identify all the anti Semites running around. Might end up as a story on 60 minutes so we can all feel bad and wring our hands over how bad another special interest group is being treated. Next story, Gay Community Big Supporter of Broadway Plays.

Blythes Master's picture

Isreal to Iran: Go fuck yourself, goy!

Billy the Poet's picture

Israel means, "he fights against God."

SpiOpsChiwowwow's picture

You guys never listen to my comments on these israil joo cunts.

joseJimenez's picture

my response would be fuck you all come and get it

Bunghole's picture

Have you washed your foreskin in your 3 weeks 5 days here on the Hedge?

Thirtyseven's picture

Fucking Hasbara pretending to be a wetback.  Nice.

Jaspergers's picture

I thought the cut off was about 50-60 years but it seems to be getting shorter and shorter

Atomizer's picture

Iran: you give us 2 nuclear warheads and we write off the debt.

Israel: let me directly discuss this with John Kerry. 

deja's picture

Israel:  Stand by.  Ok, we agree.  They're in the air now.

Gazooks's picture

hey, I'd be only too glad to hold it in escrow

Infinite QE's picture

Nuke em. Fuck em. Tired of their endless shit. Nuke em.

CPL's picture

The one that is constantly caught stealing of course.  Don't need'em.

Anusocracy's picture

Unfortunately they are in the same situation as Americans. The government is far more savage and bloodthirsty than the people.

Ringo's quote about everything government touches turning to crap applies to the public also.

CPL's picture

Ever see one of those shows about hoarders? 

Seemingly normal people that collect mountains of junk.  They live their lifes in toxic waste pits surrounded by piles of garbage that they treasure.  Most of these people live in personally constructed fire traps.  The only reason it gets that bad is because of the person that owns that hoard of garbage.  It's their security blanket, which is to be surrounded by junk that has some mental hold on them.  The thing is forcing the situation doesn't fix them.  Because it's just known that once the person is cleaned up by any external intervention, they'll just make another rats nest because the issue isn't the junk.   It's the person with the false sense of security they derive from owning all that crap under the false assumption it means anything. 

Up to these people to let it go and move on, their disease is internal and so is their cure.  They allow it to happen and it's not a stretch to understand why it happens.  They like stuff more than comfort.  They like making their own problems.  In fact politically both nations are proud of making their own problems.  So who's problem is that?

Not mine.  Not your's.  Fuck'em.  They want to get carried away, let them.  Just get out of the way.

Karl von Bahnhof's picture

Just guessing why Isreal is soo ... Not too popular nowadays

CPL's picture

You know once I would have cared, maybe lent a hand.  Couple of things changed that.  Fuck'em, let them burn.

Anusocracy's picture

First take back the billions of dollars of military equipment the US gave Israel.

Then allow Iran to buy about 200 modern tactical nukes from Russia.

Then see if Israel wants to strut its stuff.

Headbanger's picture

No need to choose.

They'll nuke each other soon enough.

escapeefromOZ's picture

Yes Nuke Israel and this act will terminate all the wars in the Middle East . 

sun tzu's picture

You need to get the saudis too

PT's picture

You shouldn't hang me on a hook, Johnny ...

A_latvian's picture

Seriously? Iran: "You don't have the right to exist... unless of course you owe us money. In that case, PAY UP!"

Just make the payment contingent on Iran publicly asserting Israel's right to exist. A similar precondition should have been put on any imperial talks between Emperor Obama and Iran, but that would never happen because NEITHER believes in Israel's right to exist.

Jews (by birth and adopted) are the most persecuted minority of all.

tmosley's picture

Rhodesia has a right to exist!

Aparteid South Africa has a right to exist!

The three are a set.  You either support all of them, or you oppose all of them.  They have/had the same policies.

Or maybe Jews have a magic word they can say that makes makes it ok for them but not for others?

Thirtyseven's picture

Not perfect analogies, but I get your point.

I for think there was nothing wrong with Rhodesia or South Africa.  They were solid countries with functioning governments and sound fiscal policies and monetary systems.  That is until they were utterly destroyed from without.

Rhodesia and South Africa never invaded their neighbors except when attacked by communist militias operating out of bases just across their borders.  Israel on the other hand constantly provokes war against it's neighbors and manages to strangle international politics across the globe.  Rho. & SoAf. pretty much kept to themselves.

A_latvian's picture

Let me make this perfectly crystal clear: YOU HAVE BEEN LIED TO!

You're saying that there is some moral equivalence between the racist policies of South Africa and the self-preservationist policies of Israel. If you believe this, you are eating the communist bullcrap with two hands and a bun. The PRIMARY fact is that the middle east would be AT PEACE if all the war-mongering antisemitic fascists (Like Germany, France, and the current U.S. prez) would just agree that, "Yeah, the Jews should probably be allowed to live!"

You can't accept this. You keep repeating lies like "Rothschilds!" and think you have any credibility. The longer you think these EEEEeevil JOOOOoos control the world, the longer you will stay poor. Which is what they (the statists) want anyway. So good for you.

A_latvian's picture

Your argument is an example of the fallacy of moral equivalence. You argue for the genocidal extermination of a people (and by extension, their state). I disagree with you. God will judge us both accordingly.