Ashgabat, Iran Go to Arbitration

Almost one year after it stopped exports to Iran, Turkmenistan will appeal to the international arbitration court to resolve the dispute between the two, the press service of the president said December 4. Turkmenistan claims Iran owes it $1.8bn for gas, which had been flowing at the rate of 9bn m³/yr.

Energy minister Myrat Archayev told his president, Gurbanguly Berdymuhammedov that the two sides had been unable to reach agreement and that the Iranian side had suggested appealing to International Court of Arbitration for a mutually acceptable, impartial solution of the issue. 

Berdymuhammedov  instructed Archayev to support the initiative of the Iranian side to apply to the international arbitration court and to prepare the relevant documents.

The head of National Iranian Gas Company Hamidreza Araqi said December 5 that the court was the only way the two sides could end their dispute, oil ministry’s news website Shana reported.

He said that the sudden cut of Turkmen gas flow left damages and financial loses which Ashgabat should compensate those. Before, Araqi told NGW in August 2016 that the amount and quality of Turkmenistan’s exported gas is under dispute.

Iran also says Turkmenistan increased gas prices nine-fold to $360/'000 m³ in December 2007 and forced Iran to agree, because the country was facing a serious gas deficit in winter. However, the gas price was lower than what Iran was charging Turkey for its gas.

Iran gas deficit will continue this winter as well.