Arbitration between Russia, Turkey may last long, expert says
Baku, Azerbaijan, Oct.29
By Orkhan Guluzade - Trend:
The arbitration process between the Russian Federation and Turkey over the price of supplied Russian gas may last long, Tolga Demiryol, associate professor of Kemerburgaz Turkish University (Istanbul), an expert on political and economic issues told Trend Oct.28.
He said that in most cases the sides, which appealed to the Court of Arbitration, agree among themselves sooner or later.
Earlier, the Turkish Hurriyet newspaper said that Turkey appealed to the International Court of Arbitration Oct.26 over the prices for Russian gas supplied to the country.
Spokesman of Gazprom Sergei Kupriyanov said that Turkey's submitting a claim to the International Court of Arbitration in Stockholm against Gazprom is not something unusual, the Russian company doesn't rule out an out-of-court settlement of the dispute.
"Filing a claim to a court of arbitration is one of options provided for by the contract," he said. "This is normal. The possibility of both an out-of-court settlement of the dispute and decision by a court of arbitration remains."
BOTAS expected in March 2015 that Russia would make a 15-percent discount for the gas supplied to Turkey. However, Gazprom agreed to make a discount only for private Turkish companies, which account for over one third of imported Russian gas.
Around 25-percent discount was made for gas for Turkey's private sector in the first quarter and additional 15 percent discount - in the second quarter of 2015.
Turkey's private companies have been paying $390 per 1,000 cubic meters of Russian gas since January 2015, according to Turkish media.
BOTAS refused from Russia's gas offer on March 18 since it demanded additional concessions from Turkey on construction of the Turkish Stream pipeline.
Currently, Turkey imports gas from Iran, Russia and Azerbaijan. Moreover, the country has signed agreements with Algeria and Nigeria for supplying 4.4 billion and 1.2 billion cubic meters of liquefied gas per year, respectively.
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