Arbitrators of the International Centre for Settlement of Investment Disputes ruled in favor of the Israeli gas company of Ampal to sue the Egyptian government for unlawfully closing a gas pipeline in 2012, according to Haaretz.
The ruling didn’t specify the size of the award. However, the ruling sets a ceiling of $174mn as Egypt allegedly closed a gas pipeline unlawfully through which it used to export gas to Israel.
Ampal’s lawyers said that they are optimistic and believe that Egypt would have to pay. Haaretz continued that after former Egyptian president Hosni Mubarak was toppled in 2011, several gas pipelines that are passing from Egypt’s Peninsula of North Sinai to Israel were bombed several times since 2012.
Citing an anonymous source, Haaretz reported that several lawsuits were filed against Egypt and it hasn’t paid the damages imposed by the international courts. The source added that refraining from paying the damages may prevent future investments in Egypt.
Ampal filed the lawsuit against Egypt’s government in 2012. Therefore, Egypt had to cancel the gas deal with Israel in response. Ampal’s main holding was its 12% stake in the Eastern Meditteranean gas company, the owner of the Arish-Ashkelon pipeline.