News ID: 195808
Published: 0243 GMT July 01, 2017

Iran's gas exports to Turkey up 14%

Iran's gas exports to Turkey up 14%

Iran increased gas delivery to Turkey by 14.1 percent to 3.228 billion cubic meters (bcm) in four months of 2017, compared to the same period in 2016.

Gas deliveries to Turkey in April reached about 811 million cubic meters (mcm) which is 24.5 percent more than the figure for April 2016, according to statistics provided by Turkey's Energy Market Regulatory Authority, Trend News Agency reported.

Since January 2017, Iran has delivered gas to Turkey free of charge to pay off its $1.9 billion debt, based on a verdict by International Court of Arbitration. Turkey had sued Iran for overcharging on gas price during former Iranian president Mahmoud Ahmadinejad's second term in office.

Iran exported 7.7 bcm of gas to Turkey in 2016 and recorded a 17.46-percent share in Turkey's total gas imports (including LNG) in March 2017.

In December 2016, Turkey proposed a mechanism to trade in local currencies with Iran as well as China and Russia.

Turkish President Recep Tayyip Erdoğan said that he had put forward a proposal to Russian President Vladimir Putin to conduct trade between the two countries in local currencies.

"I proposed Putin the following: Let's do our trade in local currencies. Whatever I buy [from you] I shall pay you in Russian ruble, and whatever you buy from me make the payment in Turkish liras," Erdoğan said.

He added that he had made the same offer to China and Iran and his offer was found logical.

"We have given the necessary instructions to our central banks and we will try to conduct such [trade] relationships between us through this way," Erdogan said.

The Turkish president said that Tehran and Ankara had decided to double the bilateral trade while phasing out the US dollar as the dominant currency in their transactions.

"I believe there is some trouble with transferring funds due to the sanctions [imposed on Iran]," Erdoğan said.

"We … want bilateral trade to be conducted in local currencies. Iranian central bank officials and our Halk Bank chairman have discussed the matter."

Russian Industry and Trade Minister Denis Manturov said in December 2016 that Moscow was working on a plan to switch to national currencies in mutual trade with Iran. Manturov added that the policy was based on an expected surge in Iran-Russia trade.

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