International Court of Arbitration has ruled in favour of Turkey against Iran over quarrel between the countries on the settlement of natural gas prices, according to statements of both governments.
Turkish government had brought its gas price dispute with Iran into arbitration in 2012.
The Turkish energy ministry released a statement on Tuesday saying that “[Arbitration] Court has ruled in favour of Turkey, ratio [of discount] will be determined by arbitration commission.”
Hamid Reza Aragi, the Iranian deputy oil minister, confirmed that Turkey has won the arbitration case against the Iranian-designated natural gas prices for Turkey, according to Azerbaijan’s Trend news agency.
Following the decision, it is expected that Turkey will win a discount of 10 percent or 15 percent over gas prices, which have been extending the years between 2011 and 2015.
Aragi has stated that Iran will pay compensation to Turkey as a result of the latest ruling.
Turkey’s Anadolu Agency has reported that Turkish award could be over 1 billion dollars in total.
Turkey buys nearly 20 percent of its natural gas from Iran, though most of its gas imports come from Russia, being the state-run natural gas company Gazprom’s second biggest export market after Germany.