The British government’s ban on North Sea oil supplies to Israel is to be challenged in the High Court on the grounds that it infringes the law of the European Economic Community (EEC). The case is also likely to involve the European Court of Justice.
The oil had been sold in April 1981 by Sun International and Sun Oil Trading Company to a company called Bulk Oil registered at Zug, Switzerland. The sale contract contained the words “destination free but always in line with exporting country’s government policy.”
Since early 1979, the British government has limited oil supplies to other EEC countries, members of the International Energy Agency and to other countries with which there is an existing pattern of supply. This latter clause includes Finland but excludes Israel.
The policy was restated earlier this month following a meeting between Israeli Energy Minister Yitzhak Modai and his British counterpart, Peter Walker.
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