Egypt has cancelled a gas contract with Israel, according to international reports. The 20-year deal, which supplies around 40% of Israel’s natural gas was apparently ended over disputed payments between private companies.
According to reports from Reuters Israeli Foreign Minister Avigdor Lieberman told radio stations: “We want to understand this as a trade dispute. I think that to turn a business dispute into a diplomatic dispute would be a mistake.”
Egyptian Natural Gas Holding Company (EGAS) apparently complained it had not been paid by the Israeli-Egyptian firm that buys gas from Egypt and sells it to Israel.
Since Egyptian President Hosni Mubarak was ousted last year tensions have risen between the two countries, who signed a peace treaty over thirty years ago.