Gas money: Turkey to pay Russia, instead of Iran...

Turkey's energy minister on Friday said the country would not make any penalty payments to Iran this year for the Iranian natural gas Ankara pledged to buy but failed to do so.

"We will not be paying Iran anything this year under take-or-pay deal for natural gas. However, such payment will be made to Russia by large," Taner Yildiz told reporters in a press conference in Ankara.

Take-or-pay contract is common in energy sector and Turkey's gas contracts with Iran and Russia -- two of the country's biggest natural gas suppliers -- also includes such conditions.

Turkey paid Iran 704 million USD for natural gas it failed to use from the country in 2008. A similar situation applies to the Russian gas as well. Turkey has to buy at least 75 percent of the gas it pledged to buy from Russia annually.

Yildiz also said he was set to leave for Tehran on Saturday to discuss with his counterparts price cuts in natural gas.


/World Bulletin/