There is a chance that natural gas deliveries from Egypt could resume, following a ruling by an Egyptian court, former Merhav Group VP Dr. Nimrod Novik said yesterday.
On Saturday, a Cairo court sentenced former President Hosni Mubarak to life in prison for shooting demonstrators, but acquitted him on corruption charges over his involvement in the gas supply deals signed by East Mediterranean Gas Company (EMG). The court also reportedly acquitted Mubarak's sons and associate Hussein Salem of similar charges in the gas affair.
After the verdict, a source close to EMG shareholder Merhav Group said, "It has been proved that the charges originated in a Middle Eastern fantasy, and that it is now clear that the deal served the interests of both Egypt and Israel."
In media interviews yesterday, Novik said that the Egyptian court's ruling created an opportunity for the new Egyptian government to resume gas deliveries to Israel, although not fully. He said that Egypt could decide that the government companies which cancelled the contracts with EMG a month ago exceeded their authority, and that the government could ask the Israeli government and EMG to show understanding for partial deliveries for a limited period, while adjustments to the contracts arising from the new situation were formulated.
Published by Globes [online], Israel business news - www.globes-online.com - on June 4, 2012
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