Swiss Court Confirms Compensation Payment from Israeli Company to Iran

A court in Switzerland has upheld a ruling for the Israeli oil company "Trans-Aziatic" to pay Iran in relation to a pre-revolution contract, rejecting the company's appeal. According to an Israeli newspaper, the Iranians have won in two cases so far, including last year when the National Iranian Oil Company won a $1.2 billion case. The Swiss Supreme Court in Lausanne ruled on June 27 (a month and a half ago) for the payment of 250,000 Swiss francs (260,000 dollars) held in court and court costs amounting to 200,000 francs by "Trans-Aziatic." The Haaretz newspaper, citing the International Judicial Rulings publication (GAR), states that with the lifting of sanctions on the Iranian oil company, there are no longer legal barriers to the payment. The Israeli company's appeal is part of a legal process between Iran and Israel, despite the fact that the two sides have no relations and Tehran refuses to recognize Israel as a country. The international case dates back to an agreement between the Israeli government and the Pahlavi regime in Iran aimed at transferring oil to European customers. This agreement was for the establishment of a pipeline from the Red Sea to the Mediterranean and selling it through the "Trans-Aziatic" company, which has a fleet of oil tankers, registered in Panama, but its main office is in Tel Aviv. Relations between the two parties began in 1968. Despite the revolution, the severance of relations, and Tehran's rejection of Israel's existence, Iran has initiated three cases against Israel and Israeli companies. The aim of these cases is to receive payment for oil provided on credit to Israel and to receive half of the price of a canceled oil partnership, estimated at a total of 7 billion US dollars. According to the Israeli newspaper, the Iranians have so far won in two cases, including last year when the National Iranian Oil Company won a $1.2 billion case. However, Israel has refrained from paying this money, and it remains unclear how this money can be collected. Israel had previously even refrained from appointing an envoy to handle this case, leading a court in France to appoint Jewish lawyer Theo Klein. Mr. Klein withdrew from legal work due to old age. Ultimately, in January 2016, the Israeli government appointed a new envoy. In 2014, the Israeli newspaper Haaretz reported that Prime Minister Benjamin Netanyahu had "ordered" his country's institutions to prevent access to and publication of documents related to the oil deal from fifty years ago to avoid paying compensation to Iran. At that time, Israel considered the payment of money to be in conflict with ongoing sanctions. A significant portion of those sanctions have been lifted with the nuclear agreement between Iran and six world powers.