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Turkmenistan reacts to Iran’s statements on gas dispute

Business Materials 26 January 2017 14:21 (UTC +04:00)
Turkmenistan’s Foreign Ministry has said the country did not violate the conditions of bilateral gas agreement with Iran.
Turkmenistan reacts to Iran’s statements on gas dispute

Baku, Azerbaijan, Jan. 26

By Fatih Karimov – Trend:

Turkmenistan’s Foreign Ministry has said the country did not violate the conditions of bilateral gas agreement with Iran.

Turkmenistan has supplied gas to Iran starting from December 1997 according to the purchase contract and strictly complies with the conditions enshrined in the bilateral agreement, the ministry said in a statement on Jan. 26.

On Jan. 24, Hamid Reza Araqi, Iran’s deputy oil minister, said Tehran may file a complaint against Turkmenistan in the International Court of Arbitration over the gas dispute.

Iran will definitely file the complaint in the International Court of Arbitration, if Turkmenistan refuses to hold talks with Iran to resolve the issue, Araqi added.

Meanwhile, Turkmenistan’s Foreign Ministry says that starting from 2013, Iran's national gas company does not show appropriate efforts to pay off the debts for Turkmen gas which has been previously supplied to the Islamic Republic.

“As a result, a vast debt of the Iranian side has accumulated, which creates financial difficulties in operating the gas transportation infrastructure at regular mode for long-term gas supply to Iran.”

During the year 2016, the Iranian side was officially informed about the unfavorable state of the gas supply, including a possible limitation in supply of Turkmen gas, the Foreign Ministry said.

According to the ministry’s statement, Turkmenistan stopped gas supply to Iran as Tehran refused to take any step to settle the disputes.

“The lack of positive reaction on part of Iran's national gas company to the constructive initiatives of Turkmenistan and inactivity in the search of mutually acceptable alternatives resulted in forced limitation of Turkmen gas supplies to Iran as of January 1, 2017.”

Earlier, Araqi said the country’s deal for gas import from Turkmenistan will stay in force for five years.

Turkmenistan claims Iran has to pay $1.8 billion due payment for gas it received in 2007-2008. Iran denies the claim.

In that period, Turkmenistan reportedly increased the gas price for Iran from $40 to $360 per 1,000 cubic meters, despite a 20 year deal.

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