Israel Courts Russian Investors

Russia’s president, Vladimir Putin met Israel’s prime minister, Benjamin Netanyahu in Moscow June 7 – their fourth meeting in 12 months.

For the first time, in a press conference, they talked publicly about the possibility of Russian companies investing in Israel .

"There are no legal restrictions on Russian companies participating in gas projects in Israel," Netanyahu said in an answer to a question by a Russian reporter, according to a transcript on the Kremlin website.

"What has really limited and slowed down our participation in gas field development projects with all the companies was the time it took to adopt the decision that allowed us to expand and develop our gas fields, regardless of the company. We managed to resolve this problem, so our door is now open to all companies from all countries that have vast experience in developing gas fields, including, of course, Russia."

Putin (left) and Netanyahu in the Kremlin yesterday (Credit: Kremlin website)

Without specifying the exact time Putin said that Russia had once had a project to deliver gas to Israel, however following the gas discoveries off shore Israel that project was cancelled "which is natural," he added. However, he advised Israel of one project "a small but good one – is to switch public transport in Israel to liquefied natural gas."

It is not clear what Putin tried to suggest by this remark since Israel has no onshore facilities either for producing or storing LNG. Export monopoly Gazprom however is seeking new markets for the fuel, and transport is one area where demand may develop.

Putin also addressed the difficulties of selling Russian gas to Poland and said jokingly "Perhaps, the Israelis will buy this gas from us and sell it to Poland – this is also an option."

At the end of the press conference, Netanyahu emphasized once again his open mindedness to Russian involvement in the Israeli energy industry. "I would like … to clarify things. Once again, I encourage Russian energy companies to participate in all tenders in this area."

During the press conference Putin was asked about the impending rapprochement between Turkey and Israel, and his answer was positive. "I am exceptionally positive about it. We believe that any movement of these states and peoples towards each other will have a positive impact on the international situation in general. The fewer problems there are between the states, the better. We welcome this process."

Ya'acov Zalel