Israel Ordered to Pay Iran $1.1 Billion*
EAPC was founded in 1968 as a partnership between the Israeli government and the Iranian national oil company. It was established through foreign front companies that, to this day, hold its shares. Its primary aim was to build and operate a land bridge for transporting Iranian oil from Eilat to the Mediterranean Sea, for export to European customers. Local businessmen and close associates of leading politicians sit on the board of the Eilat-Ashkelon Pipeline Company (EAPC), all personal appointments of various finance ministers, controlling the firm under cover of a confidentiality order that keeps information about its activities under wraps.
All the oil imported to Israel that is processed by the oil refineries in Haifa and Ashdod passes through the EAPC system, en route to the gas tanks and stove tops in Israel and the occupied territories. Haaretz
An Israeli oil company has been ordered by a Swiss court to pay $1.1 billion to Iran in compensation in a long-standing legal battle related to a joint venture before the Islamic Revolution, the IRNA news agency says.
Citing an “informed source” at Iran’s Presidential Centre for Legal Affairs, IRNA said the ruling relates to the Israeli company’s sale of Iranian oil and withholding the money.
Iran has been conducting three arbitration suits against Israel at French and Swiss courts in a legal tussle estimated worth several billion dollars.
The case relates to a joint venture established in 1968 under the defunct shah of Iran to ship the country’s oil to the Israeli port of Eilat in the Mediterranean for export to Europe.
Iran cancelled the contract after the Islamic Revolution of 1979 because the country doesn’t recognize Israel.
Tel Aviv, instead, expropriated Iran’s assets and launched its own litigation offensive against the Islamic Republic, which has been dismissed at international courts.
According to IRNA, the latest ruling pertains to a case related to the National Iranian Oil Company (NIOC)’s delivery of 14.75 million cubic meters of crude oil worth $450 million to Israel’s Trans-Asiatic Oil Ltd. or TAO.
In 1989, the Swiss court initially ordered TAO to pay $500 million to Fimarco Anstalt, a company registered before the revolution in Lichtenstein by NIOC.
The court put off proceedings for interest claims then, issuing a final ruling only this month, which ordered TAO to pay $1.1 billion in addition to $7 million in legal fees, IRNA quoted the source as saying.
The source said Iran has also launched a case against TAO in Panama’s courts for implementation of the ruling and original claims against the Israeli firm.
Switzerland’s Federal Supreme Court has reportedly allowed Iranian clients to file an arbitration claim for $7 billion against Israel.
The original claim is related to Iran’s shares in the Eilat-Ashkelon Pipeline Co. (EAPC), as well as two oil ports and storage facilities, and a fleet of tankers which have been expropriated by Israel.
The Tel Aviv regime has issued a secrecy order under which any information about the company’s operations and news of arbitration is subject to military censorship.
The EAPC, part of TAO, is one of the most secretive companies in Israel, operating under a special legal force since 1968.
The company enjoys immunity from public control and regime supervision including its comptroller as well as the Knesset and the media.
The Eilat-Ashkelon Pipeline Co. was built in the aftermath of the Sinai operation of 1956 against Arab armies.
During the months that Israel controlled Sinai, Israel stole pumps and pipes from an Italian and Belgian firms operating oil fields in the peninsula and built the pipeline from Eilat.