Court backs Iran vs. Israel in pipeline case

Court backs Iran vs. Israel in pipeline case

 Switzerland’s highest court has ordered Israel to pay Iran around $1.1 billion plus interest in a decades-old dispute over an oil pipeline company predating the 1979 Islamic Revolution.

The Swiss Federal Tribunal in Zurich on Thursday rejected an appeal, citing lack of due process, against an arbitration ruling last year. The verdict, dated June 27, was available on the Lausanne court’s website, Reuters reported.

A pipeline was jointly set up by the deposed regime of Mohammad Reza Pahlavi — Iran’s last monarch — and the Israeli company Eilat-Ashkelon Pipeline Co. (EAPC) in 1968 to carry Iranian oil to the Mediterranean.

The venture was halted after the Iranian Revolution and the establishment of the Islamic Republic, which does not recognize the Israeli regime.

The Israeli company has refused to pay back Iran’s share of the revenues from the joint venture.

The Islamic Republic had been pursuing the case since 1994, first in France and then in Switzerland.

The court also awarded Iran 450,000 Swiss francs ($461,302) in court costs and lawyer fees.

It remains unclear whether Israel will pay up given restrictions its “trading with the enemy” laws.

The Israeli company had been involved in a partnership with the National Iranian Oil Company (NIOC) under Pahlavi. The Israeli firm operated a fleet of tanker ships to carry Iranian oil to European customers.

The partnership ended in 1979, but the Israeli firm refused to pay for the Iranian oil already sold to third parties.

The total sum in the latter case is estimated at some USD 7 billion.

Source: Tasnim News Agency