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.
Israeli company refuses to pay Iran compensation set at $1 billion
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.
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