Financial dispute sees Egyptian firm abruptly cut off gas supplies to Israel
JERUSALEM A state-run Egyptian energy company decided to abruptly end gas supplies to Israel, leading to widespread concern. However, Israeli Prime Minister Benjamin Netanyahu, in an effort to stave off any diplomatic crisis, termed it as a "business dispute".
"We don't see this cutoff of the gas as something that is born out of political developments.. It's actually a business dispute between the Israeli company and the Egyptian company," he said, according to AP.
Netanyahu's comments are in contrast to the sharp criticism of the move by his cabinet ministers who warned that the cutting off of gas supplies would harm the shaky relations between the two nations.
Israel depends on Egypt for 40 per cent of its natural gas needs.
The head of the state-owned Egyptian Natural Gas Holding Company, told AP on Sunday night that it was exercising a legal right to terminate the contract because its Israeli customers had not paid for the gas for four months.
He said it had "nothing to do with anything outside of the commercial relations"
Israel and Egypt signed a 20-year agreement in 2005 according to which Egypt was to provide natural gas to Israel.
However, since last year's uprising in Egypt, the deal had become a cause of tension between the two countries as for many Egyptians it symbolized the close ties ousted leader Hosni Mubarak had with Israel and the alleged embezzlement of funds by a few of his associates.
The gas pipeline has been blown up by Egyptian militants at least 14 times since the uprising began more than a year ago.
Source: Middle East News.Net
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