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Israel to Seek Speedy Arbitration in Moscow of Its $2, 000, 000 Claim

February 10, 1958
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Israel may seek the right to name a new member of the three-man court of arbitration in Moscow hearing its claim for over $2, 000, 000 in damages against the Soviet Union for unilateral breach of the 1956 oil-for-citrus trade agreement.

This was indicated here today by Moshe Leshem, Foreign Ministry press spokesman, who said that if Dmitri Ramasaitzev, Israel’s nominee on the court, does not recover by the end of this month Israel will attempt to have him replaced rather than hold up the hearing any longer. The case went before the arbitration court last December and has been postponed several times since then because of Mr. Ramasaitzev’s illness.

The claims arise from the cancellation of oil deliveries by the official Soviet oil export company after Israel launched its Sina operation. The company explained its action as having been ordered by the government. Israel insists that the company is a government arm and may not legally side-step its obligations on such a plea.

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