04/25/12

Permalink Tensions flare as Egypt cuts off gas deal with Israel

Israeli officials have sought to downplay the political repercussions of Egypt's abrupt decision to cancel a 20-year gas-supply contract over a payment dispute amid deteriorating ties between the two countries. The gas deal, signed in 2005, has emerged as a focus for public ire in Egypt. Once seen as a vehicle for corruption under Hosni Mubarak, the ousted Egyptian leader, it is now viewed as a hated symbol of the previous regime's close ties with the Jewish state. Israeli officials initially reacted angrily to the Egyptian decision, calling it a "dangerous precedent" that could endanger the 1979 peace treaty between the two countries. But yesterday, Israel back-pedalled on its criticism of Cairo, painting the dispute as purely commercial in nature.

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