The International Court of Arbitration will determine the exact amount of compensation Iran has to pay to Turkey over the lingering gas dispute, as the two sides failed to agree on the amount of compensation, managing director of the National Iranian Gas Company said on Monday.
"Negotiations between Iranian and Turkish experts over determining the exact amount of money Iran has to pay to Turkey as compensation for selling natural gas to this state at a rate higher than the regional market rate came to no fruition because of which ICA itself will settle the issue," Hamidreza Araqi was quoted as saying by Mehr News Agency.
Araqi noted that ICA will announce the amount that will be 13-16% of the exported gas price since 2011, which maybe as much as $1 billion.
According to NIGC chief, Iran signed a contract in 1996 to export 10 billion cubic meters of gas per year to Turkey for 25 years.
Turkey’s state-owned oil company Botas complained to the International Court of Arbitration regarding the price and volume of Iranian gas in March 2012.
According to Araqi, the two sides provided ICA with their own proofs and on February 3, ICA ruled that Iran supplied gas to Turkey at a higher price compared to other regional producers and cut its gas export price to Turkey by approximately 15%.
Turkey receives more than 90% of Iran’s natural gas exports under a long-term contract, which amounts to 30 million cubic meters per day and about 10 billion cubic meters per annum.
The International Court of Arbitration is the world's leading body for the resolution of international disputes.
