Oil inched up slightly on…
The U.S. has not just…
In 2009 the ICC had to resolve a dispute between Turkey and Iran over gas supplies, and Turkey was awarded $800 million compensation related to gas purchases from Iran.
Now Turkey are once again taking Iran to international arbitration over the prices that they pay for imported gas.
Turkey imports 10 billion cubic metres of gas each year from Iran, making it their second largest supplier after Russia; but they are not happy. Energy Minister Taner Yildiz has complained that the price is too high. "The prices at which we buy gas from Iran are above international prices. Our arbitration application is based on just reasons."
Although Ankara reject the claim, and Majid Boujarzadeh, spokesman for Iran's National Gas Company, reminds Turkey that “Both sides should remain committed to the contract, which has an article regarding arbitration.”
Boujarzadeh also wanted to make clear that, "This issue is not related to the sanctions imposed on Iran”.
In fact Turkey is looking to agree a waiver from the US sanctions on any institutions dealing with Iran’s central bank for its sole oil refiner, Tupras. Turkey buys about 30 percent of its oil from Iran, and whilst it has approached Saudi Arabia as an alternative source of oil, it must continue trading with Iran until a deal can be secured.
By. James Burgess of Oilprice.com
James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…