Swiss court orders Israel to pay Iran in oil dispute

The Swiss Federal Tribunal on Thursday rejected an appeal by Israel, ordering Iran to be paid approximately USD $1.1 billion in a decades-old dispute over the Eliat-Ashkelon Pipeline.

Switzerland's highest court rejected Israel's appeal for lack of due process, and also awarded close to USD $460,000 in court costs and lawyers fees. Despite the ruling, it is uncertain whether Israel will actually acquiesce to the court order. Israel's "Trading with the Enemy" law could be a potential stumbling block to Iran receiving its court mandated award. The Eilat-Ashkelon Pipeline Co. (EAPC) was a joint venture between the two countries set up in 1968 to transport Iranian oil to Europe, primarily the Mediterranean. Following the Iranian Revolution, however, the relationship collapsed and Iran began seeking its share of revenues and assets from the EAPC through arbitration beginning in 1994.

This order marks a victory for Iran at a time when the country has faced heightened international scrutiny for its nuclear program.

Iranian leaders have repeatedly claimed that the developing nuclear program is for peaceful purposes, but the international community, Israel in particular, worries that Iran's enrichment program was designed for military purposes. The US and France agreed in March to strengthen nuclear talks with Iran to persuade the nation to restrain its nuclear program in exchange for relief from sanctions and in April Iran agreed to a framework deal to restrict its nuclear plan. Developments in this regard were largely positive and resulted in subtle improvement in ties between the US and Iran. A report obtained by the Associated Press in July from the UN International Atomic Energy Agency (IAEA) showed that Iran has been keeping its commitment as part of a preliminary nuclear deal from 2013 barring Iran from expanding nuclear programs during negotiations. The Iranian Parliament accepted the nuclear agreement in October and moved the process on to the Guardian Council, which determined the legislation was consistent with the constitution and Islamic law. And as little two days ago, Iran agreed to release four US citizens in exchange for seven Iranians being held in the US for violating former US sanctions. Source: Jurist.org