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Iran ready for gas talks with Turkmenistan, says compensation first

Business Materials 28 January 2017 14:40 (UTC +04:00)

Tehran, Iran, Jan. 28

By Mehdi Sepahvand – Trend:

Iran is ready to sit for gas talks with Turkmenistan, but first the Turkmens would have to “make up for the damages they have done”, CEO of the National Iranian Gas Company Hamidreza Araqi told Tasnim news agency January 28.

Turkmenistan halted gas flow to Iran on January 1, just one day after they had agreed that a previous deal for gas import from Turkmenistan would 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.

Turkmenistan had been supplying gas to Iran since December 1997. On Jan. 24, Araqi said Tehran may file a complaint against Turkmenistan in the International Court of Arbitration over the gas dispute.

In his most recent interview, however, Araqi said Iran may for the time being consider not pursuing the legal case. He added Iran considers the previous agreement invalid and would only negotiate a new agreement.

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