ISRAEL Law and Practice Contributed by: Joseph Sprinzak and Rahel Rimon, J.SPRINZAK
(OECD) and therefore adopts a wide range of legislation regarding anti-money laundering and terror financing, as well as laws forbidding trade with “terrorist organisations”. Israel has not imposed formal trade or eco - nomic sanctions against Russia following the invasion of Ukraine; however, many companies are reluctant to engage in trade with Russia for fear of being blacklisted under international sanctions regimes. Moreover, in practice, Israeli banks comply with almost all financial sanctions against Russia and Belarus set by European and US regulators. 8.4 International Conflict(s) The most notable legal impact of the war in Ukraine on commercial grain contracts has been the shift in the attachment of the risk in cost, insurance and freight (CIF) contracts to the entry into the Bosphorus Straits. This provides a measure of comfort to Israeli buyers seeking to mitigate the risk attendant on loading in Black Sea ports. A month after the Hamas attack on Israel on 7 October 2023, the Houthis began attacking commercial vessels suspected of being linked to Israel or to Israeli entities or individuals in the Bab el-Mandeb straits and Gulf of Aden, leading to the diversion of shipping routes between Asia/ Oceania and the Mediterranean/Europe from the shorter route through the Red Sea to the longer route around the Cape of Good Hope and West Africa. According to Bank of Israel findings, the impact on Israeli imports and exports of these attacks has been limited compared to other OECD coun - tries in the Mediterranean, first in light of the small volume shipped to and from Asia/Oceana and second because of the swift action taken by
ZIM Integrated Shipping Services Ltd to divert its vessels to an alternative shipping route that bypasses Africa, followed by the majority of the international shipping industry. Similarly, there have been minimal legal consequences of the Houthi attacks in the Israeli jurisdiction. 9. Additional Maritime or Shipping Issues 9.1 Other Jurisdiction-Specific Shipping and Maritime Issues In Israel, cabotage is regulated by the Coastal Shipping (Permit to Foreign Vessel) Law – 2005, and the regulations promulgated thereunder in 2012 regarding applications for permits. Section 1 of the Law defines coastal shipping broadly and includes the carriage of goods and passengers originating from and destined for a port, vessel, facility or structure located in coast - al or internal waters of Israel, without calling on a foreign port, excluding the carriage of empty containers or empty tows used by the ship-own - er to carry goods. The law provides for permits to engage in cabo - tage, including the requirement for a permit to perform any other operation in such waters, excluding fishing, oil and natural gas drilling and production, and the placing of pipes for conduct - ing oil or natural gas on or under the sea bed. In so far as the contiguous zone is concerned, the placing of cables or pipes on or under the seabed is also excluded. It should be noted that, in practice, foreign ves - sels are permitted to operate in Israeli coastal waters under a 30-day temporary permit. The vessel will be subject to testing by the Chief
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