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Israel: Court strikes down Netanyahu’s contentious gas deal

By  |  March 27, 2016

In a blow to Prime Minister Benjamin Netanyahu’s energy policy, the High Court of Justice has ruled against the government’s controversial gas deal with the monopoly of firms drilling off Israel’s coast.

The court specifically struck down what’s known as the agreement’s stability clause, which commits the Israeli government, now and in the future, not to impose any regulatory changes on the gas industry for at least 10 years.

Last month Court Vice President Justice Elyakim Rubinstein surprised many when he said that the clause should be backed by legislation, rather than just a cabinet resolution. The companies fear investing billions of dollars to drill and extract the gas, only to have a future government impose tax or regulatory changes that would reduce the viability of the investment.

Full content: Haaretz

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