Egypt terminates gas deal with Israel

Al Jazeera reports: The head of the Egyptian Natural Gas Holding Company has said it has terminated its contract to ship gas to Israel because of violations of contractual obligations, a decision Israel said overshadows the peace agreement between the two countries.

Mohamed Shoeb, the gas company’s top official, said Sunday’s decision was not political. This has nothing to do with anything outside of the commercial relations,” Shoeb said.

He said Israel has not paid for its gas in four months. Yigal Palmor, Israeli foreign ministry spokesman, denied the claim of not paying.

The 2005 Egypt-Israel gas deal has come under strident criticism from leaders of the popular uprising that toppled Hosni Mubarak, the longtime Egyptian president, last year.

Critics charge that Israel got bargain prices, and Mubarak cronies skimmed millions of dollars off the proceeds.

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One thought on “Egypt terminates gas deal with Israel

  1. Norman

    Goodness, turning the tables so to speak. Time after time, the Israeli leadership reneges on agreement[s], but in their eyes, that’s O.K. But when the other party objects, then the Israeli response is “poor me”, you hate us or some such muck that they think up. Stealing from others, isn’t O.K. Now, the time to pay is upon them. Like any selfish bully, their days are numbered until the end, which is getting pretty darn close.

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