World Bank fines Egypt $2 billion over gas supply row

A World Bank court has fined Egypt over $2 billion for failing to supply natural gas to a Spanish-Italian-owned plant in the chaos that followed the 2011 uprising in the country.

The International Centre for Settlement of Investment Disputes on Monday ruled Cairo must pay the hefty fine to Union Fenosa Gas - a joint venture between Spain's Naturgy and Italy's Eni - The Financial Times reported.

The ruling has come after Egypt stopped supplying the venture's plant in the northern city of Damietta as the country faced internal energy shortages in 2012.

Union Fenosa Gas filed the case against Egyptian authorities in 2014.

The report said Egypt will likely pay the fine by renewing gas supplies to the natural gas plant.

Earlier this year, a Swiss court ordered Egyptian energy companies to pay $3 billion in compensation to Israeli companies after Egypt cut off supplies of natural gas in 2012.

Egyptian authorities raised natural gas prices for households and businesses in July by up to 75 percent.

The increases followed hikes to fuel, electricity and public transport prices that are part of a $12 billion IMF loan programme signed in 2016, aiming to lift the economy battered since the 2011 uprising.