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Israel Sues U.s.s. R. for Breach of Oil Contract; Seeks $2,396,000

An Israeli oil importing company has filed a claim against the Soviet Government, seeking $2,396,440 for violation of an oil export contract, according to a Moscow report published today by the New York Times.

The claim is the first of several expected to be filed by Israel, seeking damages for Russian cancellation of oil contracts following the Sinai action a year ago. According to the Times, other suits will be filed by Israel in Moscow if the first claim is granted.

Under the Soviet-Israel contract, the suit in Moscow will be heard by a three-man foreign trade arbitration commission of the All-Union Chamber of Commerce. There is no appeal from the ruling of the commission. However, the Times points out, “the history of the commission indicates that it has sought to achieve a good reputation in international business and law circles, and that it has at times been more liberal to capitalist claimants than arbitrators elsewhere.”