Subscribe to FDD

Turkey to Sue Iran on High Gas Sales Price After March 16

Bloomberg
14th March 2012


By Emre Peker

 

Turkey is planning to sue Iran for charging high prices on natural gas sales after final talks between the neighbors failed, Energy Minister Taner Yildiz said.

Under the two countries’ contract, legal action is allowed after March 16 and Turkey intends to file for arbitration shortly thereafter, Yildiz told reporters in Kuwait after meeting Iranian Oil Minister Rostam Qasemi, according to Turkey’s state-run Anatolia news agency.

Turkey pays a higher rate for gas to its eastern neighbor than it does to Russia, Yildiz said, the news agency reported. The price rose at the end of 2010 based on contractual formulations, he said. Iran, Turkey’s second biggest natural gas provider after Russia, has legal reservations on cutting prices, the Turkish minister told reporters, according to Anatolia.

“I can’t say they’re ill intentioned,” Yildiz said of Iranians. “Therefore our relations aren’t affected, I believe they have good intentions and they believe the same for us.”

Continue reading at Bloomberg

Related Issues