Report: Israel ordered to pay Iran $1.1 billion

An Israeli oil company has been ordered by a Swiss court to pay $1.1 billion to Iran in compensation.

Eilat-Ashkelon Oil Pipeline

An “informed source” at Iran’s Presidential Center for Legal Affairs, IRNA, said that an arbitration team has recognized Iran’s right to receive $1.1 billion in compensation from Israel for the properties abandoned by the country following the Islamic revolution, PressTV reported.

This is the second decision in the international arbitration, which has been conducted over the past 20 years in Switzerland between Israel and Iran on the rights that the Islamic Republic lost in the Eilat-Ashkelon Oil Pipeline (EAPC).

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Every decision in this arbitration is expected to meet objections and appeals, as well as secondary discussions on interest calculations and the gap between the value of currencies in 1979 and today.

Iran has been conducting three arbitration suits against Israel at French and Swiss courts in a legal tussle estimated to be worth several billion dollars.

The case relates to a joint venture established in 1968 under the deposed 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 does not recognize Israel.

Israel in responding expropriated Iran’s assets and launched its own litigation offensive against the Islamic Republic, which has been dismissed in 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.

The Swiss court In 1989, 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 EAPC, part of TAO, is one of the most secretive companies in Israel, operating under a special legal force since 1968. Any information about the pipeline or its financing is subject to censorship.

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