The Moscow Chamber of Commerce’s arbitration tribunal will begin formal hearings November 21 of Israel’s suit against the Soviet Union for 2, 400, 000 pounds in damages sustained through the unilateral breaching of a contract to supply two Israel firms with crude oil. Observers here view this as a “test case” of Moscow’s intentions in international trade.
The two Israeli importers, Delek National Oil and the Palestine Electric Corporation’s subsidiary–Jordan Investment Ltd.–have brought suit for damages under one of six contracts they had with a Soviet oil exporting firm. The Soviet company refused to ship oil after the Sinai campaign began, on the excuse that Moscow would not grant export licenses.
The Israeli suit argues that the exporter is a national company and cannot claim to have been halted by a superior authority and, secondly, that never in the past had the question of export licenses ever been raised.
Economic quarters in Israel have pointed out that the USSR has frequently stressed its opposition to political impediments to the free flow of international trade. The stoppage of oil to Israel as a gesture of solidarity with Egypt is just such a political barrier, these circles stressed.
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