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Israel to Claim Damages from Moscow for Disruption of Trade Pact

July 15, 1957
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Two Israeli attorneys are expected to leave for Moscow shortly to press Israeli claims for damages caused by the unilateral disruption of a trade agreement by the Soviet state-owned Petroleum Export Company which refused to make scheduled oil shipments to Israel during the Sinai campaign.

Israel had a trade agreement with the USSR which exchanged citrus fruit for crude oil, but during the Sinai operation an Israeli tanker at Odessa was refused a scheduled cargo on the grounds of instructions from the Soviet Government.

Under the terms of the trade pact, Israel has the right to appeal to arbitration before a court of the Moscow Chamber of Commerce. It is understood that the Israelis will demand of the court that oil shipments be resumed and that compensation be paid for the damages resulting from the unilateral denunciation of the trade pact.

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