Iran ruled out a payment to Turkey of 25% economic compensation for the cut in the export of natural gas to the Eurasian country, which triggered a legal dispute, reported Prensa Latina News Agency. Since Ankara’s judicial complaint on the matter was unsuccessful, Iran is not obligated to pay for legal proceedings.
However, the court agreed to accept the Turkish demand for a discount of 12.5% against 25 that the plaintiffs intended, and based on that second verdict the Iran will compensate with about $2b. It is expected that this sum of money will be delivered to Turkey in the form of gas transfer contracts, according to The Iran Project.
In 1996, Tehran and Ankara signed a 25-year agreement to buy and sell natural gas with the Eurasian nation receiving Iranian fuel starting December 2011. Yet, the Turkish government had filed two complaints against the Persian nation related to gas transactions, but recalled that Tehran’s first charge of ‘low sale’ was rejected by a court thanks to the strong defense of the Ministry of Petroleum. In the second case, when Ankara sought large compensation from Tehran for allegedly low fuel sales, the same Iranian government entity persuaded the court and Turkey’s claims were again dismissed.