Iran to pay Turkey in gas or cash from arbitration over prices

Published February 15th, 2016 - 06:00 GMT
After overcharging for natural gas over a four-year period, Iran has agreed to pay Turkey back, either in the form of cash or more natural gas supplies. (Shutterstock)
After overcharging for natural gas over a four-year period, Iran has agreed to pay Turkey back, either in the form of cash or more natural gas supplies. (Shutterstock)

Iran, in compliance with the arbitration ruling on overcharges of natural gas prices to Turkey between 2011 and 2015, will pay either through more natural gas supplies or in cash, according to Iranian Deputy Foreign Minister Ibrahim Rahimpur Wednesday.

"Rest assured, we will pay it back, and the problem will be solved soon," Rahimpur told Anadolu Agency during Iran's National Day celebrations in Ankara. 

Turkey brought the case to court because of Iran's high natural gas prices applied to the country during the four-year period between 2011 and 2015. In 2012, Turkey applied to the International Court of Arbitration over the overpriced gas.

The International Court of Arbitration ruled against Tehran in the gas dispute, officials from Turkey's Energy and Natural Resources Ministry told Anadolu Agency on Feb. 2. 

Turkey and Iran must agree on the level of discount Turkey will receive on Iranian gas within three months, Turkey's Energy Minister Berat Albayrak said the same day. 

According to Rahimpur, Iran's Oil Minister Bijan Zangeneh will come to Turkey and Iran's and Turkey's experts will meet to discuss the issue. 

"Natural gas exports from Iran to Turkey still flow, we did not cut gas supplies," he added. 

Turkey imported 10 billion cubic meters of natural gas from Iran last year.

By Huseyin Erdogan


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