Monday 23 April 2012

Egypt cancels Israeli gas deal

Egypt cancels Israeli gas deal

Egypt has cancelled a gas contract with Israel, according to international reports. The 20-year deal, which supplies around 40% of Israel’s natural gas was apparently ended over disputed payments between private companies.

According to reports from Reuters Israeli Foreign Minister Avigdor Lieberman told radio stations: "We want to understand this as a trade dispute. I think that to turn a business dispute into a diplomatic dispute would be a mistake."

Egyptian Natural Gas Holding Company (EGAS) apparently complained it had not been paid by the Israeli-Egyptian firm that buys gas from Egypt and sells it to Israel.

Since Egyptian President Hosni Mubarak was ousted last year tensions have risen between the two countries, who signed a peace treaty over thirty years ago.

Written by

Bruna Pinhoni

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