Egypt has to come to terms with the fact the Mubarak government signed contracts with other nations. It has no right to simply pull a tantrum and cancel a contract whereby Israelis will have their lives interrupted in a profound way.
I realize the new Egyptian government condemns its former President for corruption and personal wealth, however, there are contracts to be honored and renegotiated in the face of a changing world. It is not reasonable for Egypt to simply stop a pipeline, which is a lifeline, to the Israeli people.
Published 20:27 22.04.12
By Avi Bar-Eli and Reuters
Egypt's national gas company EGAS (click here) announced Sunday that it will be cancelling its natural gas supply deal with Israel.
Ampal-American Israel Corporation, a partner in the East Mediterranean Gas Company (EMG), which operates the pipeline, said the Egyptian companies involved had notified EMG they were "terminating the gas and purchase agreement."...
This is a contract between two sovereign countries, it cannot be ended unilaterally, especially considering this is a product for the survival of the Israeli people. Egypt has to honor this contract even though they are opposed to the terms as established by the past Mubarak government. The new Egyptian government can negotiate different terms with proper notice of its demands. What if the roles were reversed? Israel would be at the world court by now on charges of human rights violations.
...Critics charge that Israel got the gas at below-market prices (click here) and that Mubarak cronies skimmed millions of dollars off the proceeds, costing Egypt millions of dollars in lost revenue.
Egyptian militants have blown up the gas pipeline to Israel 14 times since the uprising more than a year ago.
Israel insists it is paying a fair price for the gas.
Mohamed Shoeb, the head of the Egyptian Natural Gas Holding Company, said the decision to cancel the deal was not political.
“This has nothing to do with anything outside of the commercial relations,” Shoeb told The Associated Press....
I bet it was below exploitative current market prices, but, that probably was not the case when the contract was first drawn up. Egypt has to take itself more seriously. If they are going to unilaterally withdraw from contracts it will be viewed as an untrustworthy partner. Egypt is endangering its future in the way of acting as a reliable source for natural resources if this is the way it conducts itself. I doubt the new Egyptian government wants to provide an image to the world of being impulsive based on the changing of its leadership.
Egypt has to stop embarrassing themselves like this. They are appearing unreasonable and vindictive rather than as a sovereign nation with a right to justice within its contractual agreements.
