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Posted by Fred 2012-04-24 00:00||
Front Page|| [183 views ]
File under: Arab Spring
#1 Sadly, the gas cutoff will harm Egypt more than Israel, according to Arutz Sheva:
Citi Capital Markets says that the disruptions in Egyptian gas deliveries in 2011 and the first quarter of 2012 have given Israel Electric Corporation (IEC) plenty of opportunity to find alternative sources of supply, particularly since the agreement's suspension is unlikely to have come as a surprise.
"Although the Israeli Ministry of Finance estimated that Egyptian gas suspensions have cost Israel NIS 15bn (1.7% GDP), we don't think that the damage to Israel is particularly visible. And since Israel's offshore gas field Tamar is due to begin production in April 2013, any further domestic shortfalls are likely to be relatively brief," the company said.
Citi added, "The deterioration in Egypt's relationship with Israel is likely to lead to economic costs in future. Although Egypt's gas exports have no formal status within the Camp David accords that govern Egyptian-Israeli relations - Egypt was not a gas exporter in 1979 - this week's news is perceived as a symbolic devaluation of Camp David, which in turn could have real-money consequences for Egypt in two main respects."
These effects include greater risk of reduced America aid. Although $1.3 billion has already been approved for 2012, future aid allocations are growing less likely. The decision also jeopardizes Egypt's Qualifying Industrial Zones (QIZs), which generated almost $1 billion in exports in 2011, Globes reported.
Posted by trailing wife 2012-04-24 20:21||
#2 "Sadly, the gas cutoff will harm Egypt more than Israel"
Posted by Barbara 2012-04-24 20:33||