Al Jazeera
Top official insists decision was not political as Israel says it overshadows the peace agreement between the two.
The head of the Egyptian Natural Gas Holding Company has said it has terminated its contract to ship gas to Israel because of violations of contractual obligations, a decision Israel said overshadows the peace agreement between the two countries.
Mohamed Shoeb, the gas company's top official, said Sunday's decision was not political. This has nothing to do with anything outside of the commercial relations,'' Shoeb said.
He said Israel has not paid for its gas in four months. Yigal Palmor, Israeli foreign ministry spokesman, denied the claim of not paying.
The 2005 Egypt-Israel gas deal has come under strident criticism from leaders of the popular uprising that toppled Hosni Mubarak, the longtime Egyptian president, last year.
Critics charge that Israel got bargain prices, and Mubarak cronies skimmed millions of dollars off the proceeds.
'Bad faith'
The sale of gas to Israel, which signed a peace treaty with Egypt in 1979, has always been controversial in the Arab world's most populous country. It was the largest trade deal between the two former foes.
Egyptian militants have blown up the gas pipeline to Israel 14 times since the uprising.
On Sunday, Israel Finance Minister Yuval Steinitz said the unilateral Egyptian announcement was of "great concern'' politically and economically.
The head of the Egyptian Natural Gas Holding Company has said it has terminated its contract to ship gas to Israel because of violations of contractual obligations, a decision Israel said overshadows the peace agreement between the two countries.
Mohamed Shoeb, the gas company's top official, said Sunday's decision was not political. This has nothing to do with anything outside of the commercial relations,'' Shoeb said.
He said Israel has not paid for its gas in four months. Yigal Palmor, Israeli foreign ministry spokesman, denied the claim of not paying.
The 2005 Egypt-Israel gas deal has come under strident criticism from leaders of the popular uprising that toppled Hosni Mubarak, the longtime Egyptian president, last year.
Critics charge that Israel got bargain prices, and Mubarak cronies skimmed millions of dollars off the proceeds.
'Bad faith'
The sale of gas to Israel, which signed a peace treaty with Egypt in 1979, has always been controversial in the Arab world's most populous country. It was the largest trade deal between the two former foes.
Egyptian militants have blown up the gas pipeline to Israel 14 times since the uprising.
On Sunday, Israel Finance Minister Yuval Steinitz said the unilateral Egyptian announcement was of "great concern'' politically and economically.
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