Iran may pay compensation worth $1B to Turkey

The International Court of Arbitration court has ruled against Iran in its gas dispute with Turkey,said Hamidreza Araqi, Iran’s deputy oil minister.

Under the court’s ruling, Iran should provide Turkey with compensation of 10-15 percent for the gas supplied to that country during 2011-2015, Araqi said, Tasnim news agency reported.

“Although the court's ruling is final, the money which Iran should pay out to Turkey has not yet been determined," he said.

He estimated that the compensation maybe about $1 billion.

In 1996, Iran and Turkey signed a 25-year deal on supplying 30 million cubic meters of gas to Turkey per day. Ankara appealed to the International Court of Arbitration regarding the price on Iranian gas in March 2012.

Although the contract is still in place, it remains a sore point in the two countries’ gas relationship. The two sides have held new talks on both price and volume of imported gas from Iran.

Turkey wanted a 25-percent discount from Iran for the supplied gas, while Iran said to agree to the discount if Turkey increases the amount of imported gas. Eventually, the sides has to settle the dispute in the court.

Iran is Turkey’s second supplier of gas after Russia, providing for one-fifth of the country’s consumption.

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