Cabinet To Debate Transfer Of Ownership Of Parts Of Jerusalem's Russian Compound To Russia

On the eve of Prime Minister Ehud Olmert's two day visit to Russia, the cabinet is expected to discuss a proposal to transfer ownership of Sergei's Courtyard in downtown Jerusalem's Russian Compound to the Russian government.

The proposed move is the culmination of four years of negotiations, when Russian Prime Minister Vladimir Putin, laid claim to the site on behalf of the Russian Orthodox Church.
The decision to transfer the property to Russia comes depite its recent invasion of Georgia, its construction of a nuclear reactor in Iran and the sale of missile defense systems to Israel's enemies.

Sergei's Courtyard currently houses offices of the Agriculture Ministry and the Nature and National Parks Protection Authority, and the Jerusalem branch of the Society for the Protection of Nature in Israel.

The Sergei Courtyard  was owned by the uncle of the Tzar Nicolai II . Since 1952 the Israel General Guardian formed a legal guardianship and ownership rights to the property and in 1964 purchased most of the Russian compound from the Red Church for $3.5 million, the transaction was known as the Orange deal as Israel who wasshort of funds at the time paid the sum in citrus fruit.

At the beginning of the 1970's, Israel leased the buildings out to various organizations.
When diplomatic relations were re established between Russia and the Soviet Union a decade later, the Russians repeatedly demanded ownership of the Russian compound and Sergei courtyard.10/05/08