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Israeli Firms to File Damage Claims Against the Soviet Government

Israeli oil companies that are partners to this country’s oil agreement with the Soviet Union are preparing to file damage claims against Russia for abrogation of the oil pact and interruption of the flow of oil from that country.

Claims can be submitted, under the agreement, to arbitration by the Moscow Chambers of Commerce Trade Court which, according to Israeli trade circles here, has been found in the past to be fair. One previous Israeli arbitration proceeding before that court had been adjudicated satisfactorily, these sources said.

Observers here see the Kremlin’s capping of the oil flow to Israel as a “typical case” of the misuse of economic pressure for political purposes.