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The Orange Deal: How the Soviets Sold Palestinian Lands to Israel

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The Orange Deal, signed in 1964, involved the Soviet Union selling Palestinian lands to Israel for $4.5 million, paid in textiles and oranges, amidst ongoing legal disputes and geopolitical implications.

The Orange Deal highlights the complex historical relationship between Russia and Israel, particularly regarding land ownership and geopolitical interests in the region.

The legal disputes surrounding the Orange Deal reflect broader tensions in international relations, especially in the context of Russia's current geopolitical challenges.


The Orange Deal: A Historical Overview

The "Orange Deal," also known as "Agreement No. 593," represents a significant historical transaction between the Soviet Union and Israel, involving the sale of Palestinian lands that were previously owned by the Imperial Orthodox Palestine Society. Negotiations for this deal began in 1948, culminating in a formal agreement signed on October 7, 1964, during the waning days of Soviet leader Nikita Khrushchev's administration. The deal was characterized by a stark contrast between the estimated value of the properties, pegged at 18 million pounds sterling, and the sale price of $4.5 million, which was paid in installments through textiles and shipments of Jaffa oranges.

The properties included 22 sites across Jerusalem, Haifa, Afula, Ein Karem, and Kafr Kanna, notably the Russian Consulate General and the Russian Hospital. This transaction was rooted in the historical context of Russian interests in the Holy Land, dating back to the mid-19th century when the Russian Spiritual Mission was established to support Orthodox Christian pilgrims.

Legal Challenges and Recent Developments

The legitimacy of the Orange Deal has faced scrutiny over the years, particularly from the Russian Orthodox Church outside Russia and the Palestinian Orthodox Society, which argued that the deal lacked legal authority. In 1984, the Jerusalem District Court recognized the deal's illegality, demanding compensation from Israel. Despite this, some properties were returned to Russia in 2008, although disputes over tenancy persisted.

In a surprising turn of events in 2020, the Sergievskoye complex was registered in the Israeli land registry in favor of Russia, a move interpreted as a diplomatic agreement between Israeli Prime Minister Benjamin Netanyahu and Russian President Vladimir Putin. This development was reportedly linked to the release of Israeli tourist Naama Issachar from Russian custody. However, in March 2022, the Israeli Central Court reversed the registration of the Alexander Nevsky Church's land back to Israel, citing the geopolitical pressures stemming from sanctions against Russia due to its actions in Ukraine.

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