Egypt is beginning to end ties with Isreal.
April 21, 2012- Energy companies in Egypt, citing trade problems, have ended a natural gas deal to supply Israel. The move may erode even further the bilateral ties that have been strained due to the popular revolt last spring that toppled the pro-Israeli leader in Egypt.
One of the partners, an Israeli, in the business deal made the news public Sunday, but a firm in Egypt said the cancellation had taken place last Thursday. Egypt supplies Israel with 40% of its natural gas. The country is worried about having to face additional energy cuts, following a series of sabotage’s on a pipeline that runs through the always volatile Sinai Peninsula that has contributed to the country’s shortfalls.
The Finance Minister of Israel was greatly concerned about the cancellation of the natural gas deal. He said it set a dangerous precedent casting a shadow over the peace accords and the current peaceful relationship between the two countries.
Egypt, back in 1979, was the first of two countries in the Arab world to sign peace accords with Israel. Jordan followed in 1994. No reason was given as to why the Egyptians made the decision to cancel the contract, but the Israelis have mentioned that they are studying their legal options in the matter.