The Political Economy of Soviet-Israeli Oil Relations, 1948 - 1967

DOI10.1177/004711787600500404
AuthorArthur Jay Klinghoffer
Date01 October 1976
Published date01 October 1976
Subject MatterArticles
1112
THE
POLITICAL
ECONOMY
OF
SOVIET-ISRAELI
OIL
RELATIONS,
1948 -
1967
ARTHUR
JAY
KLINGHOFFER
There
have
been
several
excellent
studies
of
Soviet-Israeli
relations
but
the
role
of oil
has
received
almost
no
scholarly
attention.
This
is
due
primarily
to
the
paucity
of
published
material
on
this
topic
as
the
Soviets
have
revealed
very
little
about
their
oil
ties
with
Israel
other
than
the
quantity
of
oil
delivered
to
that
state
during
the
years
1953 -
1956.
Israeli
sources
are
much
more
forthcoming
in
regard
to
certain
details
but
the
information
provided
is
still
rather
sparse
because
of
censorship
guidelines.
Ever
since
Israel’s
independence
was
announced
in
1948,
oil
has
been
considered
a
matter
of
national
security
because
it
is
essential
to
the
military,
and
Israel’s
oil
import
routes
suffer
from
strategic
vulnerability.
In
addition,
the
Israeli
government
has
feared
that
excessive
publicity
could
lead
her
suppliers
to
cancel
certain
oil
agree-
ments.
Oil
remains
a
touchy
subject
in
Israel
but,
now
that
the
Soviet-
Israeli
oil
trade
has
been
inoperative
for
over
eight
years,
this
clarifi-
cation
of
the
historical
record
concerning
past
events
should
in
no
way
jeopardize
Israeli
security
interests.
Nevertheless,
it
is
preferable
that
the
numerous
Israelis
who
provided
information
and
documentation
for
this
study
should
remain
anonymous.
The
Soviet
Union’s
extensive
ties
with
Arab
states
have
tended
to
overshadow
the
working
relationship
which
existed
between
itself
and
Israel
prior
to
the
Six
Day
War
of
1967
but
it
is
now
apparent
that
the
oil
trade
was
a
crucial
aspect
of
Soviet-Israeli
interaction
throughout
the
pre-war
period.
The
Soviet
Union
played
an
instrumental
role
at
the
time
of
Israel’s
war
of
independence
in
1948 -
1949
by
facilitating
the
delivery
of
Rumanian
oil
products
necessary
for
Israel’s
successful
war
effort
against
the
Arabs
and,
once
the
Soviet
Union
embarked
on
its
so-called
&dquo;oil
offensive&dquo;
in
the
mid-fifties,
Israel
was
one
of
its
largest
customers.
Israel
relied
on
oil
for
almost
100%
of
its
energy
needs
but
it
produced
only
an
insignificant
quantity
until
it
acquired
Egypt’s
Sinai
oil
fields
during
the
course
of
the
Six-
Day
War.
Soviet
oil
sales
to
Israel
were
thus
of
the
utmost
importance
in
helping
that
state
meet
its
energy
require-
ments
in
both
the
industrial
and
military
areas.
Israel
declared
its
independence
on
May
15,
1948,
and
it
was
immediately
attacked
by
neighboring
Arab
states.
Oil
was
desperately
needed
for
the
war
effort
but
Israel
was
faced
with
an
oil
embargo
and
the
closing
of
its
only
refinery.
The
Iraq
Petroleum
Company
pipeline,
which
had
transported
a
large
part
of
Israel’s
oil
needs
from
Iraq
to
the
Haifa
refinery,
stopped
the
flow
of
oil
to
Israel
in
accordance
with
Iraqi
orders
while
Western
oil
companies
also
decided
to
embargo
all
deliveries
to
Israel.
These
companies
feared
that
Arab
states
would
seek
reprisals
against
their
holdings
if
they
provided
oil

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