11 Dec 2023
Sunday 13 November 2016
Story Code : 238885

Iran rules out compensation claimed by Turkey over natural gas

plenglish- Tehran, Nov 12 (Prensa Latina) Iran ruled out a payment to Turkey of 25 percent economic compensation for the cut in the export of natural gas to the Eurasian country, which triggered a legal dispute, asserted today an official source.

An Iranian Oil Ministry official quoted by IRNA noted that Ankara's judicial complaint on the matter was unsuccessful and therefore 'Iran will not pay for legal proceedings'.

According to the source, the Turkish government has filed two complaints against the Persian nation related to gas transactions, but recalled that Tehran's first charge of 'low sale' was rejected by a court thanks to the strong defense of the Ministry of Petroleum.

In the second case, when Ankara sought large compensation from Tehran for allegedly low fuel sales, the same Iranian government entity persuaded the court and Turkey's claims were again dismissed.

However, the source pointed out that the court agreed to accept the Turkish demand for a discount of 12.5 percent against 25 that the plaintiffs intended, and based on that second verdict the Islamic Republic will compensate with about two billion of dollars.

The official, who was not identified by IRNA, clarified that this sum of money will be delivered to Turkey in the form of gas transfer contracts, but ruled out that he would be paid in cash.

Tehran and Ankara signed a 25-year agreement to buy and sell natural gas during a visit to this country of the then Turkish President, Necmettin Erbakan in 1996, and the Eurasian nation began receiving Iranian fuel on December 10, 2011 , He recalled.

According to official statistics, the Persian state is the second largest exporter of natural gas to Turkey with an annual shipment of up to 10 billion cubic meters.
Your Name
Your Email Address