Natural Gas Asia

Tuesday, May 23, 2017

Turkey Takes Gas Price Dispute With Russia to International Arbitration Court

Turkey placed its gas price dispute with Russia before the International Arbitration Court on Monday, country’s energy minister Ali Riza Alaboyun, said Tuesday.

"We have demanded a discount from Russia, and the arbitration court will rule on it," Alaboyun said speaking at an event in Istanbul, reported Anadolu Agency.

Ankara wanted a much bigger discount than the 6 percent Gazprom announced in December. Turkey is the second-largest importer of Russian gas after Germany.

Gazprom then raised the discount rate to 10.25 percent, but this was never agreed to, reported Anadolu Agency, adding that since there was no action on the discount after December, Turkey made use of its right to take the case to the International Arbitration Court after June, based on a clause in the agreement with the Russian company.   

Dismissing any speculation of disruption in supply, the minister stated that Turkey will keep purchasing gas till the court rules on the case.